>1 

_ 


Southern  Branch 
of  the 

University  of  California 

Los  Angeles 


Form  L-l 


4°)51 
M45s 


This  book  is  DUE  on  the  last  date  stamped  below. 


Street  Railway  Accounting 

A   Manual   of  Operating   Practice 
for   Electric   Railways 


By 

IRVILLE  AUGUSTUS  MAY,  C.PA. 

Vice-President,  A)ncrican  Electric  Railway  Account- 
ants Association ;  Comptroller,  The  Connecticut  Com- 
pany;   Auditor,    Berkshire    Street    Railway    Company. 


NEW  YORK 

THE    RONALD    PRESS    COMPANY 

1917 

400&3 


Copyright,  1917,  by 
The  Ronald  Press  Company 


William  G.  Hewitt  Press,  Brooklyn,  Printers 
J.  F.  Tanley  Co.,  New  York,  Binders 


PREFACE 

The  developments  and  changes  in  street  railway  account- 

3f  ing  during  recent  years  have  been  many  and  varied.     Every 

street  railway  company  has  had  the  problem  of  devising  a 

system  of  accounting  which  should  conform  in  principle  to 

{j    the  stipulations  of  the  public  service  bodies  and  the  methods 

f*    approved  by  good  roads,  and  which  should  also  fit  in  with 

y    the  requirements  of  local  conditions. 

I  The  promulgation  by  the  Interstate  Commerce  Commis- 

^    sion  of  its  System  of  Uniform  Accounts  for  Electric  Railways 
^    has  helped  to  standardize  street  railway  accounting,  so  that  it 
xf    now  appears  probable  that  changes  will  be  less  marked  in  the 
1    future.      The   Commission's   system,   however,   deals   merely 
q     with  the  classification  of  accounts,  giving  no  description  of 
^     the  procedure  required  in  applying  the  classification  to  actual 
(•<,     conditions.     The  working  methods  followed  in  different  com- 
panies, even  where  local  conditions  are  similar,  still  show  wide 
diversity.    A  book  of  street  railway  accounting  practice  should 
be  useful  alike  for  purposes  of  suggestion  and  of  comparison. 
The  present  volume  is  not  a  discussion  of  the  theory  of 
street  railway  accounting.    Nor  yet  is  it  an  encyclopedia  of  the 
various  methods  and  plans  of  organizations  throughout  the 
country.     Perhaps  conditions  are  not  yet  ready  for  a  book  of 
either  sort ;  the  materials  are  not  yet  available.     This  work  is 
rather  an  outline  of  the  working  methods  developed  and  ac- 
tually used  by  the  accounting  departments  of  certain  large 
companies,  which  are  operated  in  accordance  with  the  Inter- 
state Commerce  Commission  regulations.    It  is  hoped  that  the 
methods  here  described  may  be  of  interest  not  only  to  ac- 
countants, but  also  to  students  of  the  industry  who  desire  a 
body  of  practical  data  based  on  long  experience  in  the  business. 

iii 


jv  PREFACE 

To  treat  fully  all  phases  of  street  railway  accounting,  even 
as  thus  circumscribed,  would  be  impossible  within  the  limits 
of  a  single  book.  Attention  is  centered,  accordingly,  upon 
those  points  which  have  been  found  in  the  writer's  experience 
to  be  most  important,  most  peculiar  to  the  business,  or  most 
troublesome  in  actual  practice. 

In  working  out  a  system  of  accounts  for  any  company, 
local  conditions  must  always  be  taken  into  consideration. 
The  industry  itself,  moreover,  is  always  developing,  and  in 
order  to  keep  up  with  new  situations  accounting  systems  must 
be  remodeled  from  time  to  time.  It  is  evident  that  the  meth- 
ods here  outlined  cannot  be  applied  indiscriminately  every- 
where. Inasmuch,  however,  as  the  procedure  here  described 
represents  to  a  large  degree  a  working  combination  of  meth- 
ods found  useful  on  widely  differing  properties,  many  points 
therein  are  of  general  application. 

The  author  well  knows  what  it  is  to  struggle  along  with- 
out guide  or  assistance  in  devising  a  system  of  accounts  for 
a  street  railway  company  of  complex  organization.  Perhaps 
the  appearance  of  this  book  will  lead  to  further  development 
and  standardizing  of  the  subject.  If  so,  the  time  spent  in  the 
preparation  of  the  present  volume  will  be  amply  rewarded. 

Irville  Augustus  May. 
New  Haven,  Conn., 
September  15,  19 17. 


CONTENTS 


Part  I — The  Organization  of  the  Accounting  Department 

Chapter  Page 

I    The  Company i 

Peculiarities  of  Street  Railway  Accounting 

Interstate  Commerce  Commission  Methods 

Express  and  Freight  Service 

Accounting  for  Cash  Fares 

Departmental  and  Divisional  Organization 

Departments  of  a  Street  Railway  Company 

Duties  of  Department  Heads 

Divisional  Organization 

Street  Railway  Forms 

Large  Amount  of  Expert  Supervision  Needed 

Chart 

I.  Organization  of  The  Wessex  Company 

II    The  Accounting  Department 12 

Two  Branches  of  the  Accounting  Department's  Work 
"Outside"  Supervision 
"Inside"  Work 

Accounting  Department  Staff 

Advantages  and  Disadvantages  of  Divisional  Organi- 
zation 
The  Main  Office 
Duties  of  the  Comptroller 
Duties  of  Comptroller's  Staff 

Chart 

II.  Organization  of  Accounting  Department 


Part  II — Accounting  Work  Mainly  Outside  the 
Comptroller's  Office 

III    Passenger  Service — Division  Cashier's  Routine      .       22 
Source  of  Street  Railway  Income 
Accounting  in  Division  Offices 


vj  CONTENTS 

Chapter  Page 

Conductors'  Day  Cards 

Conductor's  Cash  Slip 

Receiver's  Receipt 

Conductors'  Drop-Safe 

Receiver's  Handling  of  Conductors'  Cash 

Checking  Contents  of  Drop-Safes 

Register  and  Fare-Box  Readings 

Division  Cashier's  Routine 

1.  Conductor's  Cash 

2.  Sorting  Day  Cards,  Cash  Slips,  etc. 

3.  Counting  Tickets  and  Passes 

4.  Compiling  Report  of  Daily  Passenger  Earnings 

5.  Verification  of  Day  Card  Record 
Reconciliation  of  Register  Reports 
Repairing  Car  Registers 
Fare-Box  Reports  and  Reconciliation 

6.  Checking  Passenger  Earnings  Report  by  Day  Cards 

7.  Correcting  Day  Cards 

8.  Reporting  Passenger  Earnings  by  Routes 

9.  Checking  Transfers 

Forms 

1.  Conductor's  Day  Card 

2.  Conductor's  Day  Card 

3.  Conductor's  Cash  Slip 

4.  Ticket  Envelope 

5.  Receiver's  Receipt 

6.  Receiver's  Tally  Sheet 

7.  Cashier's  Daily  Report  of  Cash 

8.  Daily  Cash  Report  from  Bank  to  Treasurer 

9.  Tally  Sheet  for  Conductors'   Bags 

10.  List  of  Conductors'  Badge  Numbers 

11.  Inspector's  Register  Reading 

12.  Register  Reading  Report 

13.  Fare-Box  and  Register  Report 

14.  Register  Reading  Report  for  Foreign  Car 

15.  Cashier's  Daily  Report  of  Tickets 

16.  Division    Cashier's    Report   of    Daily    Passenger 

Earnings 

17.  Reconciliation  of  Register  Reports 

18.  Register  Repair  Report — Daily 


CONTENTS  vii 

Chapter  Page 

IV    Passenger    Service — Special    Duties    of    Division 

Cashier 47 

Relation  of  Routine  Work  and  Special  Duties 

Collecting  Conductors'  "Shorts" 

Handling  of  Doubtful  Cases 

School  Children's  Tickets 

Chartered  Cars 

Instructions  to  Division  Manager 

Manager's  Procedure — "Foreign"  Cars 

Payment  for  Chartered  Cars 

Instructions  to  Division  Cashier 

Cashier's  Report  of  Chartered  Cars 

The   Originating   Division 

Distribution  of  Charge 

The  Connecting  Divisions 

Transporting  Packages  on  Passenger  Cars 

Report  of  Package  Labels 

Transporting  Packages — Foreign  Divisions 

Cashier's  Record  of  Packages 

Transporting  Dogs 

Employees'  Deposits  for  Working  Tools 

When  Deposit  Receipt  Is  Lost 

Employees'  Lunch  Vouchers 

Record  of  Lunch  Vouchers 

Forms 

19.  Short  and  Over  List 

20.  Application  for  Pupil's  Ticket 

21.  Chartered  Car  Order 

22.  Package  Labels 

23.  Package  Labels  Sold 

24.  Employee's  Deposit  Slip 

25.  Employee's    Application    for    Duplicate    Deposit 

Receipt 

26.  Lunch  Voucher  and  Stub 

27.  Lunch  Voucher  Report 

V    Passenger  Service — Reports  and  Recapitulations  .       71 
Passenger  Business  Cash  Book 
Working  Fund  Cash  Book 
Emergency  Cases 
Working  Fund  Statement 
The  Period  Report  of  Business 


Vlll 
Chapter 


CONTENTS 

Page 

Division  Cashier's  Balance  Sheet 
Work  in  the  Comptroller's  Office 
Counting  the  Tickets  and  Passes 
Register  and  Fare-Box  Reports 
Checking  Daily  Passenger  Earnings 
Checking  Daily  Reports  of  Cash 

Checking  Period  Report  of  Ticket  Sales  and  Miscella- 
neous Business 
Checking  Cashiers'  Balance  Sheets 
Detail  Books  Prepared  in  Comptroller's  Office 

1.  Report  of  Tickets 

2.  Summary  of  Passenger  Business 

3.  Division  Cashier's  Ledger 

4.  Cash  Summary  Book 

Final  Record  of  Passenger  Business 
Preparation  of  Statements 
Distribution  of  Work 

Forms 

28.  Period  Report  of  Business 

29.  Division  Cashier's  Balance  Sheet 

30.  Monthly  Report  of  Tickets 

31.  Treasurer's  Report  of  Cashier's  Remittance 

32.  Monthly    Summary    of    Passenger    Business    by 

Divisions 

VI    Express     and     Freight     Service  —  Local     Office 

Routine 93 

Organization  of  Express  and  Freight  Service 

Classification  of  Express  and  Freight  Shipments 

Outgoing  Merchandise — Bill  of  Lading 

Incoming   Merchandise — Delivering   Shipments 

Refused  Shipments 

Money  Deposited  Daily  in  Bank 

Way-Billing  Freight  and  Express 

C.O.D.  Packages 

C.O.D.  Register 

Collecting  for  C.O.D.  Shipments 

"Over,  Short,  and  Damaged"  Reports 

Investigating  O.S.D.  Reports 

Way-Bills  to  be  Abstracted 

Issuing  Agent's  Corrections 

Tracers 


CONTENTS  IX 

Chapter  Page 

Forms 

33.  Bill  of  Lading — Small 

34.  Bill  of  Lading — Large 

35.  Special  Bill  of  Lading 

36.  Bill  of  Lading  for  Valuables 

37.  Freight  Notice  Post-card 

38.  Freight  Receipt 

39.  Driver's  Sheet 

40.  Receipt  for  Money 

41.  Way-Bill  and  Delivery  Sheet 

42.  Express  Label 

43.  C.O.D.  Way-Bill  and  Delivery  Sheet 

44.  C.O.D.  Label 

45.  C.O.D.  Register 

46.  Over,  Short,  and  Damaged  Report 

47.  Over,  Short,  and  Damaged  Record 

48.  Agent's  Correction  of  Way-Bill 

49.  Tracer 

VII     Express  and  Freight  Service — Local  Office  Sum- 
maries and  Special  Work 115 

Settling  Sheets 

Posting  Settling  Sheets  to  Ledger 

Issuing  Bills  and  Collecting 

Credit  to  Shippers 

Report  of  Unpaid  Bills 

Extending  and  Withdrawing  Credit 

Abstracting  Way-Bills 

Agents'  Period  Balance  Sheets 

Special  Duties  of  Local  Agents — Advance  Charges 

Settling  Comptroller's  Corrections 

Foreign  Company  Shipments — Outward  Way-Bills 

Foreign  Company  Shipments — Outward  Abstracts 

Foreign  Company  Shipments — Inward  Abstracts 

Forms 

50.  Outward  Way-Bill  Settling  Sheet 

51.  Inward  Way-Bill  Settling  Sheet 

52.  Bill  for  Outward  Shipment 

53.  Bill  for  Inward  Shipment 

54.  Unpaid  Credit  Accounts 

55.  Abstract  of  Way-Bills  Forwarded 


Chapter 


CONTENTS 

Page 


56.  Abstract  of  Way-Bills  Received 

57.  Agent's  Balance  Sheet 


VIII    Express  and  Freight  Service — Recapitulations  .      .     130 
Work  in  Comptroller's  Office 
Checking  Way-Bills  and  Abstracts 
Checking  Unreported  Way-Bills 
Way-Bill  Transit  Book 
Balance  Sheet  Corrections 
The  Correction  Ledger 
Checking  Agents'  Remittances 
Compiling  Earnings — By  Stations 
Compiling  Earnings — By  Divisions 
Express  Agents'  Ledger 
Preparing  Entries  for  General  Journals 
Collection  of  Bills 

Claims  for  Losses,  Damages,  and  Overcharges 
Registering  Claims 
Investigating  Claims 
Adjustment  of  Claims 
Filing  Report 

Forms 

58.  Correction  Sheet 

59.  Bank  Report  of  Agent's  Remittance 

60.  Express  Claim  Register 

61.  Express  Claim  Post-Card 

IX    Auxiliary  Operations 144 

Incidental  Revenue  from  Transportation  Services 
Accounting  for  Outside  Enterprises 
Interstate  Commerce  Commission  System 
Sale  of  Electricity,  Water,  or  Gas 
Accounting  for  Meters,  Arc  Lamps,  and  Transformers 
Meter  Deposits — Records  for  Main  and  Division  Of- 
fices 
Receipts  for  Meter  Deposits 
Cancellation  of  Charges  Against  Consumers 
Refunds  to  Consumers 
Summary  Cash  Book 
Returning  Overpayments 
Parks  and  Other  Attractions 


CONTENTS  XI 

Chapter  Page 

Forms 

62.  Meter  Deposit  Receipt 

63.  Acknowledgment  of  Money 

X    The   Pay-Rolls — Preparation      ....     .     .     .     157 

Different  Classes  of  Employees 

Pay-Roll  Procedure 

Classification  by  Occupation 

Approving  Pay-Rolls 

Computing  Time 

Conductors'  and  Motormen's  Time 

Extra  Time 

Time  of  Express  and  Freight  Motormen 

Time  Allowed  for  Other  Service 

Adjustment  of  Disputed  Time 

Varieties  of  Pay-Rolls 

Approval  of  Time  Slips  for  Outside  Work 

Weekly  Wage  Table 

Forms 

64.  Daily  Time  Card 

65.  Time  Clock  Ticket — Shops 

66.  Time  Clock  Ticket— Shops  (Night  Shift) 

67.  Daily  Check  List — Track  Employees 

68.  Time  Report — Superior  Employees 

69.  Motorman's  Time  Slip 

70.  Report  of  Extra  Cars  Run 

71.  Miscellaneous  Time  Allowed 

72.  Express  Motorman's  Day  Card 

73.  Non-Revenue  Car  Mileage 

74.  Adjustment  of  Time 

75.  Pay-Roll— General 

76.  Pay-Roll— Officers 

77.  Pay-Roll — Conductors  and  Motormen 

78.  Pay-Roll — Conductors  and  Motormen 

XI    The  Pay-Rolls — Special  Procedure  and  Checking  .     178 
Increases  and  Changes 
When  Sliding  Scale  Is  in  Effect 
When  Force  Is  Increased 
Resignations  and  Promotions 
Additional  Pay-Roll  Suggestions 


Xll 


CONTENTS 


Chapter  Page 

Pay-Roll  Proof  Sheet 
Prompt  Notice  of  Errors  to  Comptroller 
Checking  Pay-Roils  in  Comptroller's  Office 
Payment  of  Employees 
Paying  Illiterate  Employees 
Unclaimed  Wages 

Payment  of  Wages  Not  Claimed  at  Regular  Time 
Distribution  of  Pay-Rolls 
Final  Checking  of  Pay-Roll 
Careful  Record  of  "Authorities" 
Writing  Off  Unclaimed  Wages 
Final  Record  and  Journal  Entries 

Forms 

79.  Increase  of  Pay 

80.  Increase  of  Force 

81.  Change  of  Pay-Roll 

82.  Pay-Roll  Proof  Sheet 

83.  Assignment  of  Wages 

84.  Certificate  to  Pay-Rolls 

85.  Record  of  Unpaid  Employees 

86.  Weekly  Distribution  of  Pay-Rolls 

87.  Distribution  of  Pay-Rolls 

88.  Index  Card  of  Employees 

89.  Distribution  of  Pay-Rolls 

XII     The  Purchasing  Department     .......     196 

Volume  Large  but  Procedure  Simple 

Making  the  Requisition 

Buying 

Invoices 

Following  Up  Back  Orders 

Forms 

90.  Requisition  on  Purchasing  Agent 

91.  Order  Blank 

XIII     The    Stores    Department — Receipt    and    Issue    of 

Material 201 

Relation  to  Accounting  Department 
Routine  in  Stores  Department 
Requisitions 
Receipt  of  Material 


CONTENTS  xiii 

Chapter  Page 

Checking  with  Shipping  Memorandums 

Stock  Cards  and  Invoices 

Rule  for  Charging  Material 

Expediting  Discount  Bills 

When  Invoice  Is  Lacking 

Monthly  Report  of  Invoices  Passed 

Issue  Slips 

Final  Disposition  of  Issue  Slips 

Issuing  Material  to  Other  Divisions 

Treatment  of  Manifests 

Monthly  Reports  of  Material  Issued 

Shop  Orders 

Issuing  Material  to  Outsiders 

Forms 

92.  Stock  Card 

93.  Daily  Report  of  Material  Received 

94.  Report  of  Uninvoiced  Material 

95.  Invoices  Passed  During  Month 

96.  Foreman's  Requisition 

97.  Manifest 

98.  Classification  Sheet  of  Material  Issued 

99.  Report  of  Material  Issued  from  Storeroom 

100.  Detail   Report   of   Material   Issued   from   Store- 

room 

101.  Shop  Order 

102.  Charges  for  Material  Issued  to  Outside  Parties 

XIV    The     Stores     Department — Care     of     Stock     and 

Inventories 219 

Care  of  Material  in  Stock 

Care  of  Material  Outside  the  Storeroom 

Freight  Bills  Stamped  by  Stores  Keepers 

When    to    Charge   Transportation,    Etc.,    to    General 

Stores 
Report  of  Scrap  Accumulated 
Inventories 

Forms 

103.  Scrap  Credit  Ticket 

104.  Division  Report  of  Scrap 

105.  Inventory  Form 


xiv  CONTENTS 

Chapter  Page 

XV    Additions  and  Betterments 229 

Necessary  Records 

Authorizations 

Definite  Limitations 

Authorization  Materiai 

Pay-Roil  Charges 

Preparation  of  Authorization  Forms 

Treatment  of  Salvage  Material 

Leased  Properties 

Notices  to  Interested  Officials 

Distribution  of  Charges 

Authorization  Ledger 

Authorization  Ledger  Transfer  Books 

Additions  and  Betterments  Ledgers 

Authorization  Index 

Charges  Against  Other  Companies 

Completed  Authorizations 

Belated  Bills — When  Chargeable  to  Authorization 

New  Construction — Need  of  Careful  Records 

Forms 

106.  Authorization  Blank 

107.  Notice  of  Approval  of  Authorization 

108.  Authorization  Ledger 

XVI    Miscellaneous  Work  in  Other  Departments     .      .     245 
The  Operating  Department — Division  Managers 
Monthly  Report  of  Coal  Consumption 
Power  Station  Output 
Monthly  Report  of  Lubricants  Used 
Additional  Operating  Department  Forms 
The  Legal  Department — Claim  Agents'  Accounts 
Claim  Agents'  Working  Fund 
Claim  Agent's  Cash  Book 

Claim  Agent's  Accounts  Checked  by  Traveling  Auditors 
Additional  Legal  Forms 

Engineering  Departments — Power  and  Equipment 
Additional  Engineering  Forms 

Forms 

109.  Monthly  Fuel  Report 
no.    Power  Station  Output 

in.   Monthly  Report  of  Oils  and  Grease  Consumed 
112.    Permit  for  Attachments 


CONTENTS 


xv 


Part  III — Accounting   Work   Mainly   Inside   the 

Comptroller's  Office 

Chapter  Page 


XVII     The  General  Books 

Difference  between  General  and  Detail  Books 
The  General  Journal 
Journal  and  Ledger  Entries 
General  Trial  Balance  Sheets 

Forms 
113.   Journal  Entry  Form 

XVIII     Detail   Ledgers  of  Earnings,   Expenses,   Supplies, 

ETC 

Book  Supplementary  to  General  Books 
General  Operating,  Earnings,  and  Expense  Ledger 
Handling  of  Expense  Ledger 
Correction  of  Errors 

Power  Station  Sub-Expense  Ledger  Accounts 
Park  Earnings  and  Expense  Sub-Ledger 
Fuel  Inventory  Sub-Ledger 

Corrections  and  Adjustments  in  Fuel  Inventory  Sub- 
Ledger 
Adjustments  of  Coal  Measurements  Reported 
Statement  of  Cost  of  Coal 
General  Stores  Sub-Ledger 
General  Stores  Reconciliation  Reports 
Stores  Issued 
General  Stores  Statement 
Scrap  Account 

Report  of  Scrap  Accumulated 
Notice  of  Balances  to  Stores  Keepers 
Scrap  Expense  Account 
Auto  Expense  Sub-Ledger 
Replaced  Machinery  Stock  Account 
Property  and  Equipment  Withdrawal  Account 
Other  Accounts  and  Records 
Fire  Insurance  Records 
Tax  Records 

Interest  and  Deposit  Accounts 
Reserves 

Accident  and  Damage  Reserve 
Depreciation  Reserves 


259 


265 


XVI 


CONTENTS 


Chapter  Page 

Sinking  Funds 
Leading  Accountants  on  Sinking  Fund  Problems 

Forms 

114.  General  Operating  Earnings  and  Expense  Ledger 

115.  Monthly  Scrap  Report — Comptroller's  Office 

116.  Motor  Car  Daily  Report 

117.  Motor  Car  Monthly  Report 

118.  Motor  Car  Monthly  Report— Comptroller 

XIX    Accounts  Receivable  and  Collections     ....     291 

Making  Out  Bills 

Forms  for  Bills 

Approval  of  Bills 

Bills  Collectible  Register 

Unpaid  Bills 

Collecting  Bills 

Bills  for  Cutting  Wires 

Bills  for  Park  Rentals,  etc. 

Handling  Bankrupt  Accounts 

Sight  Drafts  to  be  Handled  at  Once 

Sundry  Sales — Procedure  of  Outside  Offices 

Checking  of  Sundry  Sales 

Corrected  Bills 

Forms 

119.  Bill  Collectible  Form 

120.  Bills  Collectible  Register 

121.  List  of  Uncollected  Bills 

122.  Bills  Collectible  Index  or  Ledger 

123.  Rent  Bill 

XX    Invoices  and  Voucher  Accounts  Payable  ....     302 

Approving  Bills  for  Payment 

Voucher  Checks 

Frequency  of  Vouchering 

Voucher  Register 

Checking  Shippers'  Statements 

Redeeming  Cancelled  Ticket  Books 

Forms 

124.  Voucher  Check 

125.  Vouchers  Payable  Register 

126.  List  of  Oustanding  Vouchers  Payable 


CONTENTS  xvn 

~  Page 

Chapter 

XXI     Statements 310 

Utility  of  Statements 
Daily  Statements 
Weekly  Statements 
Monthly  Statements 
Monthly  Income  Report 

Relation  to  Interstate  Commerce  Commission  Accounts 
The  General  Balance  Sheet 

Monthly  Operating  Earnings  and  Expense  Reports 
Monthly  General  Stores  Receipts  and  Disbursements 
Earnings  by  Routes  Statement 
Earnings  and  Expense  of  Parks 
.Power  Station  Cost  Statements 
Accident  and  Casualty  Reports 
Authorization  Statement 
Maintenance  of  Equipment  Statement 
Comparison  of  Maintenance  of  Way  and  Structures 
Cost  of  Oil  Used  Statement 
Miscellaneous   Monthly   Statements 
Yearly  Statements  and  Reports 
Public  Service  Commission  Statements 
Statements  to  Officials  and  Stockholders  of  the  Road 

Forms 

127.  Daily  Report  of  Passenger  Earnings 

128.  Daily  Receipts  and  Disbursements 

129.  Monthly  Income  Account 

130.  General  Balance   Sheet 

131.  Earnings  and  Expenses 

132.  Operating  Expenses 

133.  Earnings  and  Expenses 

134.  Operating  Expenses 

135.  Express  Earnings  and  Expenses 

136.  General  Stores  Receipts  and  Disbursements 

137.  Approximate  Earnings  by  Routes 

138.  Park  Earnings  and  Expenses 

139.  Power  Station  Expenses 

140.  Monthly  Accident  Report 

141.  Authorization  Statement 

142.  Comparison  of  Maintenance  of  Equipment  Ex- 

penses 

143.  Comparison  of  Maintenance  of  Way  and  Struc- 

tures 


xviii  CONTENTS 

„  Page 

Chapter 

XXII    Details  of  Departmental  Management    .     .     .      .     336 

Filing  Systems 

Method  of  Destroying  Old  Records 

Labor-Saving  Devices 

Economies 

Fidelity  Insurance 

Working  Library 

Forms 

144.  Certificate  of  Destruction  of  Records 

XX1J 1     The  Statistician's  Work 344 

New  and  Important  Work 

Conservative  Methods  of  Presenting  Statistics 

Extension  of  -Statistician's  Work 

Shop  and  Cost  Records 

Utility  of  Shop  and  Cost  Records 

Car  Mileage 

Method  of  Recording  Car  Mileage 

Car  Hours 

Inspection  Reports 

Graphic  Statistics  for  Officers 

Forms 

145.  Report  of  Pressing  Off  Wheels 

146.  Car  Wheel  Record 

147.  Axle  Record 

148.  Report  of  Wheels  and  Axles 

149.  Monthly  Report — Wheels  and  Axles 

150.  Record  of  Individual  Car  Mileage 

151.  Daily  Individual  Car  Mileage  Report 

152.  Mileage  Record  for  Car 

153.  Report  of  Changes  in  Running  Time 

154.  Record  of  Cars  for  Inspection 

XXIV    Audits 358 

Checking  of  Processes 

Work  of  the  Traveling  Auditors 

List  of   Inquiries 

Auditor's  Report 

Instructions  for  Auditor? 

Supervision  of  Inventories 


CONTENTS  xix 

Chapter  Page 

Inventory  Procedure 
Need  for  Caution  and  Accuracy 
Treasury  Department  Audits 
Inside  Office  Audits 
Further  Auditing  Devices 

Forms 

155.  Requisition  for  Tickets 

156.  Ticket  Invoice 

157.  Outside  Office  Ticket  Requisition 

158.  Ticket  Stock  Record 


Part  IV — Additional  Forms 

XXV    Forms  and  Their  Use 377 

The  Significance  of  Forms 

Emphasis  Here  Placed  on  Arrangement  of  Material 

Two  Varieties  of  Forms 

XXVI    Additional  Forms  Relating  to  Passenger  and  Ex- 
press Service 380 

159.  Application  for  Position 

160.  Order  to  Photographer 

161.  Conductor's  or  Motorman's  Instruction  Card 

162.  Conductor's  or  Motorman's  Instruction  Card 

163.  Card  List  of  Conductors  and  Motormen 

164.  Inspector's  Report 

165.  Starter's  Report 

166.  Daily  Telephone  Report  of  Cars 

167.  Daily  Record  of  Telephone 

168.  Daily  Dispatcher's  Report 

169.  Lost  Article  Tag 

170.  Examination   of   Conductors — General 

171.  Examination — Automatic  Signals 

172.  Examination — Hand  Thrown  Signals 

173.  Emergency  Station  Report 

174.  Report  of  Line  Superintendent 

XXVII    Additional  Forms  Relating  to  Maintenance  and 

Equipment 398 

Shop  and  Car  House  Forms 

175.  Fire  Inspection  Report 

176.  Sprinkler  Report 

177.  Fire  Extinguisher  Inspection  Tag 


XX 

Chapter 


XXVIII 


CONTENTS 

Page 

178.  Card  Record  of  Cars 

179.  Report  of  Car  Inspection 

180.  Report  of  Car  Inspection 

181.  Defect  Card 

182.  Report  of  Flat  Wheel 

183.  Car  Replacement  Report 

184.  Defective  Armature  Tag 

185.  Armature  Tag 

186.  Armature  Repair  Record 

187.  Daily  Report  of  Cars  Removed  from  Service 

188.  Summary  of  Cars  Removed  from  Service 

Engineering  Fo*ims — Power  and  Equipment 

189.  Daily  Log — Power  Station 

190.  Daily  Log— Substation 

191.  Monthly  Report  from  Power  Station 

192.  Monthly  Report  from  Power  Substation 

193.  Test  Card 

Engineering  Forms — Maintenance  of  Way 

194.  Daily  Report  of  Rail  and  Joint  Grinding 

195.  Daily  Report  of  Work  on  Track 

196.  Report  of  Track  Laid 

197.  Certificate  of  Ties  Accepted 

Additional  Forms  Relating  to  Stores  and  Acci- 
dent Claims 421 

Stores  Forms 

198.  Request  to  Rush  Material 

199.  Daily  "Short"  Report 

200.  Request  to  Replenish  Stock 

201.  Request  to  General  Stores  Keeper  to  Ship 

202.  Stores  Keeper's  Report  of  Materials  Shipped 

203.  Bin  Card 

Legal  Department  Forms — Accident  and  Claims 

204.  Accident  Report  by  Car  Crew 

205.  Manager's  Report  of  Accident 

206.  Daily  Accident  Report 

207.  Report  of  Accident  by  Witness 

208.  Report  of  Accident  by  Witness 

209.  Request  for  Address  of  Witness  of  Accident 

210.  Monthly  Record  of  Claims 
2ii.  Claim  Ledger 

212.    Card  Record  of  Claims 


Street  Railway  Accounting 

Part  I — The  Organization  of  the  Accounting 
Department 


CHAPTER    I 

THE    COMPANY 

Peculiarities  of  Street  Railway  Accounting 

In  large  street  railway  companies  of  today  the  account- 
ing department  is  almost  the  only  agency,  except  the 
president's  office,  which  touches  all  branches  of  the  organiza- 
tion. Its  duty  is  not  only  to  "keep  the  books"  in  the  old 
sense,  but  to  record  accurately  and  completely  the  current 
history  of  the  business,  and  through  clear  interpretation 
enable  the  management  to  draw  right  inferences  as  to  future 
policy. 

The  primary  function  of  the  department  is  to  supervise 
those  parts  of  the  business  machine  which  have  to  do  with 
receipts  and  expenditures.  From  analyzing  in  its  periodical 
statements,  however,  the  immediate  financial  results  of  com- 
pany activities,  it  has  been  led  into  analysis  of  the  methods 
and  processes  which  produced  those  results  and  to  the  study 
of  company  activities  only  indirectly  connected  with  the 
receipt  and  disbursement  of  cash. 

The  accounting  department  of  a  large  modern  business 
is  a  very  different  thing  from  the  old-time  "bench  of  book- 
keepers."    In  the  responsibility  and  variety  of  its  work  it 


2         ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 

ranks  among  the  most  important  branches  of  the  business. 
The  bookkeeper  of  the  past  was  a  poorly  paid  and  unappre- 
ciated individual;  the  modern  accountant  is  regarded  by 
modern  business  officials  as  an  important  and  highly  valued 
part  of  the  management. 

In  some  ways  the  accounting  work  of  a  street  railway 
differs  little  from  that  of  any  large  business  concern,  but  in 
many  ways  it  is  more  elaborate  and  complete.  It  is  generally 
recognized  throughout  the  country  as  being  the  last  word  in 
modern  accounting,  and  certainly  the  methods  are  more  uni- 
form than  in  many  other  kinds  of  business  enterprises.  There 
are  some  features,  however,  peculiar  to  the  street  railway  busi- 
ness ;  the  following  pages  will  deal  mainly  with  those  features 
which  are  individual  and  characteristic. 

The  street  railway  business  began  with  the  transportation 
of  passengers  for  short  distances,  generally  within  the  limits 
of  a  single  town,  for  a  small  fare  which  was  paid  usually  in 
cash  to  conductors.  In  recent  years,  since  the  use  of  electric 
power,  many  of  these  single  town  systems  have  been  linked 
together  by  interurban  lines.  It  is  not  rare  today  for  one 
company  to  own,  or  operate  through  leases,  a  large  number 
of  connected  lines  over  a  wide  territory.  These  systems 
often  cross  state  lines,  in  which  case  accounting  must  be  done 
in  accordance  with  the  requirements  of  the  Interstate  Com- 
merce Commission. 

Interstate  Commerce  Commission  Methods 

The  methods  outlined  in  this  book  are  promulgated  with 
the  idea  of  conforming  entirely  to  the  Interstate  Commerce 
Commission's  "Uniform  System  of  Accounts  for  Electric 
Railways"  and  many  references  are  made  to  this  system 
throughout  the  book.  At  the  same  time  the  writer  has  kept 
in  mind  the  small  street  railway  systems  lying  entirely  within 
one  state  where  short  cuts  could  be  made  by  using  fewer 


THE   COMPANY  3 

accounts  and  by  consolidating  the  work  in  the  accountant's 
office,  while  at  the  same  time  maintaining  a  good  complete 
modern  system  of  street  railway  records. 

Express  and  Freight  Service 

Recent  years,  moreover,  have  developed  on  many  lines  an 
express  and  freight  service,  more  or  less  differentiated  from 
the  passenger  service ;  in  some  cases  it  has  grown  to  quite 
large  proportions,  and  this  has  added  complications  to  the 
accountant's  work.  Chapters  dealing  with  this  express  and 
freight  service  are,  therefore,  included  in  this  book. 

Accounting  for  Cash  Fares 

Certain  characteristic  features  of  the  business  which  have 
remained,  generally  speaking,  through  all  changes,  directly 
and  largely  affect  the  organization  and  detail  procedure  of  the 
accounting  department  of  street  railway  companies. 

In  the  first  place  the  fare,  or  charge  to  the  customer,  is 
still  reckoned  in  small  units  of  five  cents  each  on  the  majority 
of  roads.  Some  roads  now,  like  steam  roads,  require  through 
tickets,  bought  in  advance  from  station  agents,  but  in  most 
cases  the  fare  for  a  long  trip  is  still  paid  to  the  conductor  in 
a  series  of  nickels,  collected  at  zone  limits.  Since  the  con- 
ductors usually  collect  not  tickets,  as  with  steam  roads,  but 
cash,  the  most  important  task  of  the  accounting  department 
is  the  close  checking  up  of  passenger  receipts  through  direct 
supervision,  so  to  speak,  of  every  conductor. 

Departmental  and  Divisional  Organization 

In  the  second  place  the  structure  of  a  street  railway  com- 
pany presents  a  peculiar  union  of  departmental  and  divisional 
organization,  with  the  divisions  more  important,  compara- 
tively speaking,  than  with  steam  roads.  "With  the  beginning 
of  electric  transportation,"  said  Mr.  R.  R.   Bruster,  of  the 


4         ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 

Electric  Railway  Journal,  in  an  address  before  the  Central 
Electric  Railway  Association,  "the  general  manager  as  operat- 
ing head  was  undoubtedly  held  responsible  for  the  work  of 
the  office  as  well  as  the  operation  of  the  road,  thus  exhibiting 
the  divisional  type  in  its  pure  form  for  a  one-division  line. 
As  the  size  of  the  company  increased,  it  naturally  followed 
that  the  manager  relieved  himself  of  some  of  his  supervision 
over  details,  though  still  retaining  his  control  over  the  spe- 
cialized subdivisions  of  his  former  activity.  Eventually,  how- 
ever, the  divisional  powers  of  the  manager  came  in  many 
cases  to  concern  only  the  divisions  or  groups  of  so-called 
departments  relating  to  the  operation  and  maintenance  of  the 
property,  for  the  accounting  department  gradually  joined  the 
financial  or  treasury  department  and  sometimes  others  as  a 
form  of  specialized  work  outside  the  immediate  control  of  the 
general  manager. 

"The  structure  of  electric  railway  operation  today, 
either  for  the  single  company  or  for  those  under  holding  com- 
pany control,  distinctly  warrants  divisional  control  over  the 
operating  side  of  the  properties,  for  it  is  evident  that  every 
approach  to  a  general  departmental  system  for  most  electric 
railways  would  seriously  weaken  the  general  manager  with- 
out strengthening  the  president  or  executive  head.  On  the 
other  hand,  on  the  non-operating  side,  it  is  highly  essential 
that  there  be  a  departmental  development  along  functional 
lines  so  as  to  reap  the  greatest  benefit  from  specialized  skill." 

That  is,  the  street  railway  began  as  a  single  division; 
developed  departments  in  order  to  get  the  "greatest  benefit 
from  specialized  skill" ;  then,  as  the  roads  grew  larger,  again 
emphasized  the  division  principle.  When  to  the  one  city  sys- 
tem, the  systems  of  other  towns,  with  the  lines  connecting 
them,  were  added,  other  divisions  were  constituted,  each  with 
its  own  division  manager  who  exercised  considerable 
authority. 


THE   COMPANY  5 

This  peculiarity  of  structure  also  affects  the  work  of  the 
accounting  department.  The  records  and  reports  with  which 
the  accounting  department  works  are  more  distinctly  division 
records,  than  are  those  of  steam  roads. 

Departments  of  a  Street  Railway  Company 

The  departmental  organization  of  a  street  railway  com- 
pany follows  the  usual  corporate  plan.  The  immediate  source 
of  authority  is  the  board  of  directors,  elected  by  the  stock- 
holders. The  directors  elect  the  officers  of  the  company — the 
president,  who  is  the  active  head  of  the  organization,  the  sec- 
retary, the  treasurer,  and  a  comptroller  or  auditor  who  is  the 
head  of  the  accounting  department.  In  addition,  there  will  be 
a  number  of  other  officers,  appointed  usually  by  the  president, 
each  in  charge  of  a  distinct  line  of  work. 

The  accounting  system  described  in  this  book  presupposes 
the  following  group  of  department  heads  reporting  to  the 
president:  secretary,  treasurer,  comptroller,  general  manager, 
general  traffic  manager,  purchasing  agent,  stores  keeper,  engi- 
neer in  charge  of  power  and  equipment,  engineer  in  charge  of 
construction,  counsel.  The  departmental  organization  may 
be  conveniently  represented  in  the  chart  on  page  6. 

Duties  of  Department  Heads 

The  secretary  is  chiefly  an  officer  of  the  board  of  direc- 
tors, and  has  little  connection  with  the  operation  of  the  road. 

The  treasurer,  as  the  custodian  of  all  funds  and  through 
whom  all  disbursements  are  made  according  to  properly 
approved  vouchers,  has,  of  course,  a  close  relation  with  the 
operation  of  the  road. 

The  general  manager's  work  is  wholly  operative.  He  has 
charge  of  the  transportation  department  and  is  responsible 
for  the  operation  of  cars,  power  houses,  and  shops,  and  for 
the  maintenance  of  the  property ;  he  consults  with  the  heads  of 


ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 


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THE   COMPANY  7 

other  departments,  in  particular  with  the  engineers  and  the 
general  traffic  agent  with  regard  to  matters  in  which  they  are 
concerned.  While  the  title  varies  with  different  roads,  an 
officer  with  such  general  supervising  functions  is  found  on 
practically  all  street  railways. 

The  general  traffic  agent  is  responsible  for  obtaining  busi- 
ness for  the  passenger  service  and  for  the  express  and  freight 
service;  has  charge  of  advertising,  of  amusement  parks,  etc., 
and  has  other  minor  supervising  duties. 

The  engineer  in  charge  of  power  and  equipment  has 
immediate  charge  of  the  operation  and  maintenance  of  power 
houses,  lines,  and  equipment  in  consultation  with  the  general 
manager. 

The  purchasing  agent  has  charge  of  the  purchase  of  all 
material  and  supplies  on  properly  approved  requisitions. 

The  stores  keeper,  with  his  subordinates,  has  immediate 
charge  of  all  material  and  supplies,  issuing  them  on  requisi- 
tions. 

The  counsel  has  charge  of  the  legal  affairs  of  the  com- 
pany touching  the  work  of  operation  especially  through  the 
matter  of  damage  claims. 

The  construction  engineer  has  the  special  duty  of  prepar- 
ing or  approving  plans  and  specifications  for  additions  and 
betterments  to  the  property;  his  work  is  less  immediately 
connected  with  the  operation  of  the  road  than  is  that  of  the 
engineer  in  charge  of  power  and  equipment. 

The  comptroller,  as  the  head  of  the  accounting  depart- 
ment, touches  in  various  ways  the  work  of  all  the  other 
departments. 

Theoretically  the  department  heads  are  coordinate,  report 
to  the  president  and  meet  with  him  at  times  as  a  cabinet,  but 
are  mutually  independent.  Theoretically  also,  most  of  the 
department  organizations  extend  down  from  the  main  office 
to  subordinate  officials  and  employees  in  the  various  divisions, 


8         ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 

each  of  whom  is  under  the  supervision  of  the  head  of  his 
particular  department. 

In  actual  practice,  however,  any  street  railway  company 
will  show  more  or  less  overlapping  and  crossing  of  depart- 
ment lines..  In  the  system  here  sketched  such  overlapping 
shows  in  the  work  of  the  two  engineering  departments  and 
of  the  general  manager,  and  in  the  work  of  the  general  man- 
ager and  the  general  traffic  agent.  It  shows  to  a  remarkable 
degree  in  the  case  of  the  comptroller,  and  to  a  great  extent  in 
the  organization  of  the  divisions. 

Divisional  Organization 

A  division  is  a  geographical  operating  unit  of  the  road.  It 
may  take  in  the  lines  of  a  single  city  with  its  environs,  or 
those  of  a  group  of  smaller  towns  with  the  country  lines 
which  connect  them.  The  actual  business  of  transportation  is 
done  mainly  through  the  division  offices ;  the  main  office  plans 
and  directs,  and  the  division  offices  report  back  what  is  done. 

To  a  certain  extent  the  division  office  reproduces  the 
departmental  organization  of  the  company.  The  work  of  the 
purchasing  agent,  the  treasurer,  and  the  construction  en- 
gineer, is  centralized  in  the  main  office;  but  the  operating 
department,  the  stores  department,  the  legal  department,  and 
the  accounting  department  have  permanent  representatives  in 
the  divisions.  The  traffic  department  and  the  power  and 
equipment  department  work  through  division  officials  attached 
to  the  operating  department  and  the  accounting  department. 
On  a  small  division,  moreover,  the  functions  of  two  or  more 
departments  may  occasionally  be  filled  by  the  same  official. 

Actually,  however,  the  division  manager,  the  representa- 
tive of  the  operating  department,  has  a  general  oversight  of 
all  division  affairs.  All  division  officials  are  responsible  to  the 
heads  of  their  respective  departments  for  their  particular 
duties,  and  at  the  same  time  to  the  division  manager  for  what 


THE   COMPANY  g 

may  be  called  team-play.  This  blend  of  departmental  and 
divisional  organization,  which  is  practically  universal  with  all 
roads  large  enough  to  necessitate  divisions,  looks  more  com- 
plicated, perhaps,  than  it  is.  The  double  responsibility  is  diffi- 
cult to  describe  or  to  represent,  for  example  in  chart  form, 
but  it  works  smoothly  enough  in  practice.  It  affects  very 
definitely,  however,  all  phases  of  the  work  of  the  accounting 
department. 

A  feature  of  the  accounting  work  in  any  business  is  that 
the  materials  with  which  it  works,  the  records  and  papers,  are 
nearly  all  originated  by  employees  of  other  departments  who 
are  concerned  primarily  with  the  operating  aspect  of  their 
work  and  only  secondarily  with  its  accounting  aspect,  and 
who  must  be  induced  to  observe  accurate  and  substantially 
uniform  accounting  methods.  The  successful  administration 
of  any  accounting  department  depends  largely  therefore  on 
the  cooperation  of  other  departments. 

With  the  street  railway  business  this  cooperation  is  very 
important.  Nearly  all  of  the  company's  revenue  comes  from 
cash  fares  paid  to  a  large  number  of  agents  or  conductors 
and  turned  in  by  them  usually  once  a  day,  a  very  different 
situation,  for  instance,  from  that  of  a  store  where  money  can 
be  turned  in  at  once  to  some  kind  of  receiving  system  and  go 
direct  to  the  cashier.  A  very  large  part  of  street  railway 
accounting,  therefore,  has  to  do  with  an  elaborate  system  of 
checking  the  cash  collections  made  daily  by  individual  con- 
ductors. 

The  situation  is  further  complicated  by  the  divisional 
organization  of  the  business.  The  chance  of  confusion  and 
error  is  increased  largely  because  the  detail  records,  both  of 
fare  receipts  and  of  expenses,  for  power,  labor,  and  mainte- 
nance of  the  equipment,  originate  on  the  divisions,  with  wide 
difference,  in  local  conditions  and  with  varying  personalities 
among  officials. 


10 


ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 


Street  Railway  Forms 

Two  characteristic  features  of  the  work  of  the  accounting 
department  result  from  the  situation  just  described.  The  first 
is  the  large  use  of  forms  or  impersonal  blanks  for  written 
report,  used,  of  course,  in  many  branches  of  business  but 
rarely  to  such  an  extent.  The  forms  required  in  street  rail- 
way accounting  fall  into  three  groups:  (i)  brief  and  frag- 
mentary records  by  subordinate  employees  regarding  their 
daily  work,  taking  the  place  of  the  informal  conference 
reports  of  most  other  lines  of  business — an  example  is  the 
"day  card"  turned  in  by  each  conductor;  (2)  summaries 
of  the  preceding  records,  and  also  record  of  office  work,  by 
local  supervising  officials;  (3)  authoritative  digests  and 
interpretations  of  all  these  records  and  reports  prepared  in 
the  comptroller's  office. 

The  large  use  of  forms  of  the  first  two  varieties  is 
especially  significant.  They  constitute  the  original  statement 
of  fact  regarding  essential  parts  of  company  business,  for 
example,  the  conductors'  records  of  cash  and  tickets  received 
daily  and  the  bills  of  lading  and  way-bills  issued  by  express 
agents.  The  forms  of  this  kind  have  to  be  filled  out  by  a 
large  number  of  employees,  many  of  whom  are  inexpert. 
Conductors,  for  example,  constitute  more  than  a  fourth  of 
the  total  number  of  employees  on  a  street  railway,  and  the 
forms  filled  out  by  them  are  particularly  important.  From 
thirty  to  fifty  per  cent,  of  the  conductors  are  new  to  the  ser- 
vice each  year.  Designing  these  forms  is  a  most  important 
part  of  the  work  of  the  comptroller's  office.  They  must  be 
definite  and  complete  and  at  the  same  time  easily  intelligible 
and  handy  in  make-up. 

This  reliance  upon  forms  increases  correspondingly  the 
work  of  the  accounting  officials;  there  is  a  mass  of  detail 
checking  and  filing  to  be  done  daily.  But  it  minimizes  error 
and  makes  exact  records  possible. 


THE   COMPANY  ri 

Large  Amount  of  Expert  Supervision  Needed 

The  second  characteristic  feature  of  street  railway  account- 
ing is  the  relatively  large  number  of  persons  employed  in 
supervising  and  inspecting  the  work  of  subordinate  employees. 
Thus  the  reports  of  the  conductors  are  constantly  and 
minutely  checked  by  the  division  officials,  and  checked  again 
to  some  extent,  together  with  the  reports  of  the  division 
officers  themselves,  in  the  main  office  of  the  comptroller.  The 
division  offices  and  the  express  stations  are  periodically 
examined,  moreover,  by  a  force  of  traveling  auditors  attached 
to  the  comptroller's  office.  Most  street  railways  maintain  in 
addition  a  secret  service  force  to  supplement  these  regular 
agencies.  Finally,  with  regard  to  passenger  receipts,  it  is  a 
point  worth  mentioning  that  the  company  may  depend  to  some 
extent  upon  its  honest  patrons  to  see  that  dishonest  ones  pay 
their  fares.  Many  passengers  take  an  interest  in  seeing 
whether  the  conductor  rings  up  all  the  fares,  and  if  he  does 
not  some  of  them  will  report  the  negligence  to  the  company. 
It  may  be  said  also  that  the  use  of  the  prepayment  fare-box 
has  helped  very  considerably. 


CHAPTER     II 

THE  ACCOUNTING  DEPARTMENT 

Two  Branches  of  the  Accounting  Department's  Work 

In  scope  the  work  of  the  accounting  department  falls  into 
two  categories  which  might  be  termed  "outside"  and  "inside." 
By  the  "inside"  work  is  meant  i.ere  the  processes  of  record- 
ing, digesting,  and  interpreting,  within  the  comptroller's 
office,  the  various  reports  which  come  up  from  various  depart- 
ments of  the  company's  activity.  By  "outside"  work  is  meant 
the  supervision  of  accounting  processes  connected  with  mak- 
ing the  original  records,  which  are  mainly  in  the  hands  of 
employees  in  other  departments.  Officials  of  the  road  who 
have  charge  of  operation,  supplies,  construction,  etc.,  require 
certain  things  to  be  done.  In  so  far  as  any  of  these  actions 
involve  the  receipt  or  expenditure  of  money  the  accounting 
department  steps  in  and  directs  the  manner  in  which  suitable 
records  of  the  transaction  shall  be  kept,  and  to  such  extent 
as  may  be  necessary  supervises  the  work  to  make  sure  that  the 
record  is  duly  made. 

In  both  branches  of  its  activity  the  practice  of  the  best 
street  railway  companies  today  is  to  give  the  accounting 
department  entire  independence  of  action.  This  department 
records  the  history  of  the  company  and  summarizes  the 
results  of  company  activities.  If  it  is  to  have  beneficial  effect 
upon  the  activities  of  the  company  the  data  and  statistics  it 
compiles  must  be  correct,  complete,  and  impartial.  No 
restraint,  no  influence  to  make  improper  entries  in  the  books 
of  record  should  ever  be  brought  to  bear  on  the  accounting 
official.  This  official  should  be  entirely  competent,  absolutely 
honest,  and  fearless,  and  thus  be  in  a  position  to  write  the 

12 


THE  ACCOUNTING   DEPARTMENT 


13 


history  of  the  company,  so  to  speak,  just  as  it  is  from  day  to 
day.  Under  these  circumstances  the  public,  the  stockholders, 
the  directors,  the  president,  and  others  interested  are  assured 
of  the  truth,  the  whole  truth,  and  nothing  but  the  truth. 

"Outside"  Supervision 

The  chief  lines  of  the  "outside"  supervising  activity  of 
the  accounting  department  are  the  following: 

1.  The  Passenger  Service.  This,  the  most  important 
part  of  the  company  business,  takes  a  correspondingly  large 
share  of  the  attention  of  the  accounting  department,  in  con- 
nection with  the  work  of  conductors  and  other  representatives 
of  the  operating  and  traffic  departments. 

2.  The  Express  and  Freight  Service.  This  new  branch 
of  the  business,  growing  up  in  a  sense  independently  of  the 
original  organization,  has  necessitated  not  only  much  addi- 
tional work  in  checking  shipments  of  goods  and  in  handling 
claims  for  damage  or  loss,  but  a  new  development  also  of  the 
operating  and  accounting  organization,  that  is  to  say,  the 
system  of  express  stations  which  is  virtually  independent  of 
division  lines. 

3.  The  Pay-rolls.  Labor  is  one  of  the  two  chief  items  of 
expense  for  a  street  railway  company.  The  special  conditions 
of  employment  of  conductors  and  motormen  necessitate  a 
great  deal  of  work  by  the  accounting  department  in  checking 
the  preparation  of  the  pay-rolls. 

4.  Purchasing.  5.  Stores.  The  accounting  department 
has  much  work  in  connection  with  these  departments, 
especially  with  the  stores  department,  with  its  many  detail 
processes  calling  for  close  supervision  by  the  comptroller's 
office. 

6.  Additions  and  Betterments.  The  constant  renewal 
and  improvement  of  equipment  and  other  property  involves 
continual  record  and  checking  of  items  of  construction  work 


I4        ORGANIZATION    OF   ACCOUNTING    DEPARTMENT 

in  connection  with  the  engineering  departments  and  the 
operating  department. 

7.  Other  Departments.  There  are  a  number  of  account- 
ing processes  of  more  fragmentary  nature  in  connection  with 
the  legal  department — in  the  matter  of  handling  damage 
claims ;  with  the  operating  department  —  in  connection  with 
the  management  of  supplies  of  fuel,  etc.,  at  power  stations; 
with  the  treasurer's  department;  and  with  the  engineering 
department — in  connection  both  with  maintenance  of  equip- 
ment and  with  construction. 

Altogether  this  "outside"  supervising  work  takes  up  a 
very  large  part  of  the  activity  of  the  accounting  department. 

"Inside"  Work 

The  "inside"  work  of  recording  and  digesting  the  reports 
which  come  from  other  departments  is  wholly  in  the  hands 
of  the  main  office  of  the  accounting  department.  These 
records  of  various  sorts  reach  the  comptroller's  office  in  more 
or  less  fragmentary  condition ;  they  must  be  put  into  perma- 
nent form,  must  be  summarized  and  digested  and  interpreted. 
All  this  work  is  extremely  important  and  requires  expert  and 
reliable  officials.  It  is  what  used  to  be  regarded  as  the  pecu- 
liar task  of  the  accountant  With  a  large  company  today  it 
fills  the  time  of  a  dozen  or  more  experts  attached  to  the  comp- 
troller's staff.  The  work  involves  the  keeping  of  the  general 
books;  of  the  detail  books,  which  in  any  modern  business  are 
very  numerous;  the  record  and  the  collection  of  accounts 
receivable ;  the  treatment  of  accounts  payable ;  and  finally  the 
preparation  of  statements  summarizing  company  activities. 

This  work,  however,  is  less  peculiar  to  the  street  railway 
business  with  respect  to  methods  and  handling,  than  the  super- 
vising work  in  connection  with  other  departments.  It  does 
not  differ  greatly  as  to  method  from  the  general  accounting 
work  of  other  lines  of  business.     To  a  considerable  extent, 


THE   ACCOUNTING   DEPARTMENT 


15 


moreover,  this  work  has  been  standardized  since  the  issue  by 
the  Interstate  Commerce  Commission  of  its  System  of  Uni- 
form Accounts  for  Electric  Railways  with  its  classifications. 

Other  branches  of  the  inside  work,  however,  are  more 
peculiar  to  the  street  railway  business  or  represent  new  and 
interesting  developments. 

The  work  of  the  statistician's  office  in  study  and  interpre- 
tation of  company  activities  is  partly  a  further  development 
of  work  done  in  connection  with  statements,  partly  an  analysis 
of  material  not  before  considered  by  accounting  officials. 

The  system  of  frequent  and  searching  audits  of  the  divi- 
sion offices,  and  of  certain  other  departments,  by  traveling 
auditors  attached  to  the  comptroller's  office  is  a  feature 
peculiar  to  street  railway  accounting. 

Accounting  Department  Staff 

The  staff  of  the  accounting  department  includes  the 
accounting  officials  attached  to  the  division  offices  and  those 
of  the  main  office.  On  every  division  there  is  at  least  one  per- 
manent representative  of  the  department,  who  has  close  super- 
vision over  the  financial  part  of  the  passenger  service,  who 
acts  as  paymaster  and  performs  various  other  duties.  On 
large  divisions  he  may  have  a  large  force  of  assistants;  on 
small  divisions  he  may  work  alone.  In  any  case  he  must  be 
a  distinctly  reliable  and  competent  man.  He  is  responsible  to 
the  comptroller  for  his  special  duties,  and  at  the  same  time 
responsible  to  the  division  manager  like  other  division  officials. 

At  each  express  station,  moreover,  of  which  there  will  be 
perhaps  several  within  the  limits  of  a  division,  there  is  an 
agent  who  represents  in  part  the  accounting  department  and 
in  part  the  operating  department. 

The  local  representatives  of  the  department  have  the  duty 
of  collecting  the  detail  records  and  making  a  preliminary 
examination  and  digest  of  them  for  the  comptroller's  office. 


!6     organization  of  accounting  department 

There  is  a  mass  of  detail  checking  of  fragmentary  records  to 
be  gone  through  with  every  day  in  the  local  office,  which  must 
be  done  both  accurately  and  quickly  and  which  cannot  be 
allowed  to  get  into  arrears. 

The  main  office  rechecks  authoritatively  the  original 
records  forwarded  from  divisions  and  express  stations  and 
also  the  digests  and  reports  from  lower  offices.  The  main 
office  has,  of  course,  the  further  duty  to  which  all  of  the 
accounting  processes  thus  far  roted  are  preliminary,  that  of 
coordinating  all  these  local  reports  to  give  a  unified  view  of 
the  work  of  the  road  as  a  whole. 

Advantages  and  Disadvantages  of  Divisional  Organization 

The  disadvantages  of  the  divisional  organization  with 
regard  to  the  work  of  the  accounting  department  are  obvious. 
A  relatively  larger  staff  is  needed,  and  a  larger  number  of 
highly  efficient  officials,  than  if  the  work  were  concentrated  in 
a  single  office,  under  the  immediate  supervision  of  the  comp- 
troller.   The  chances  of  error,  and  even  delay,  are  greater. 

There  are,  it  is  true,  some  compensations.  The  divisional 
organization  gives  a  certain  degree  of  flexibility  to  the  sys- 
tem, which  very  likely  saves  friction.  It  makes  possible  a  first 
check  of  the  original  records  by  persons  familiar  with  local 
and  personal  conditions.  It  frees  the  staff  of  the  comptroller's 
office  from  the  tedious  preliminary  checking  of  reports.  On 
the  other  hand,  if  the  work  could  be  concentrated  in  a  single 
office  it  could  be  done  more  quickly  and  more  cheaply,  because 
modern  machine  methods  could  be  used.  With  division  offices 
of  varying  size  machine  methods  cannot  be  used  so  well.  In 
small  offices  there  would  not  be  work  enough  to  warrant  the 
purchase  of  the  Hollerith  machine  and  similar  devices. 

The  writer  is  heartily  in  favor  of  concentration,  of  having 
as  much  of  the  accounting  work  done  in  one  office  as  possible. 
The  accounting  methods  outlined  in  the  book,  however,  are 


THE   ACCOUNTING    DEPARTMENT 


17 


to  a  great  extent  based  upon  the  division  plan,  because  it  is 
easier  to  condense  and  combine  systems  than  it  is  to  enlarge 
them.  Accounting  methods  devised  for  a  large  road  with 
many  divisions  could  be  adapted  readily  enough  to  a  small 
road  by  trimming  and  omissions. 

The  Main  Office 

The  following  chart  will  give  an  idea  of  the  organization 
of  the  main  office  of  the  accounting  department  and  the  dis- 
tribution of  work  among  its  officials. 


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1%     ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 

Duties  of  the  Comptroller 

No  rule  is  followed  throughout  the  country  as  to  the  title 
of  the  chief  accounting  officer.  He  is  called  variously  vice- 
president  in  charge  of  accounts,  comptroller,  general  auditor, 
or  auditor.  In  this  book  he  is  called  comptroller.  There  are, 
of  course,  cases  where  there  are  two  such  officers,  for 
instance,  a  vice-president  in  charge  of  accounts  and  finances, 
with  an  auditor  as  an  assistant  or  in  immediate  charge  of  the 
books  and  records.  There  are  also  cases  where  the  one  officer 
looks  after  both  the  finances  and  the  accounts,  and  still  others 
where  the  general  auditor  or  comptroller  has  charge  of  the 
books  and  accounts  and  the  president  looks  out  for  the 
finances  in  addition  to  his  other  duties.  Local  conditions  gov- 
ern somewhat  the  various  duties  assigned  to  each  officer  of 
any  company.  This  is  true  all  down  the  line  and  the  follow- 
ing scheme  is  given  merely  as  a  sample  of  the  distribution  of 
duties  assigned  to  members  of  the  comptroller's  staff. 

The  comptroller  is  responsible  for  the  conduct  of  the 
affairs  of  the  accounting  department  and  all  accounting  heads 
receive  instructions  from  and  report  to  him.  He  signs 
all  governmental  reports  and  all  statements  and  important 
letters  except  such  work  as  he  specifically  designates  to  some 
department  head.  He  signs  all  vouchers  for  payment,  bills, 
and  journal  entries,  except  those  delegated  to  an  assistant. 
All  questions  of  additions  to  the  office  force  or  increases  in 
pay  are  referred  to  him. 

Before  outlining  the  duties  of  the  comptroller's  staff, 
mention  should  be  made  of  an  important  duty  of  the  comptrol- 
ler, viz.,  the  time  spent  in  planning  and  laying  out  the  work, 
which  is  a  large  part  of  good  management.  The  case  is  the 
same,  of  course,  as  with  all  department  heads  and  supervising 
officers.  To  plan  the  work  is  one  thing.  To  see  that  the 
plans  are  carried  out  is  another  thing.  The  head  of  any 
department  of  the  road,  unless  it  is  a  very  small  department, 


THE  ACCOUNTING   DEPARTMENT 


19 


must  have  time  to  plan  the  work  for  his  assistant  or  others; 
he  must  make  time  to  think,  not  alone  of  his  own  depart- 
ment, but  of  all  other  departments  in  connection  with  his 
own.  He  must  make  sure  that  he  has  planned  his  work  so 
that  it  can  be  done  by  others  and  he  must  see  that  such  work 
is  properly  carried  out.  Some  officials  and  heads  of  depart- 
ments forget  sometimes  that  the  best  way  to  handle  their  own 
work  is  not  to  become  so  buried  in  detail  that  they  cannot 
take  time  to  think,  to  plan,  and  also  to  see  what  the  "other 
fellow"  is  doing  in  a  similar  company.  An  occasional  day 
spent  on  the  property  and  in  the  offices  of  the  neighboring 
corporation  in  the  same  line  of  business  is  well  spent  and  may 
easily  save  your  company  a  considerable  sum  of  money  in 
adopting  some  device  or  scheme  tested  out  by  the  "other 
fellow." 

Duties  of  Comptroller's  Staff 

The  comptroller's  assistant  will  be  responsible  in  a  general 
way  for  the  work  in  the  various  local  offices  and  the  traveling 
auditors  will  report  directly  to  him.  He  will  have  special 
duties  assigned  by  the  comptroller,  such  as  preparing  govern- 
mental reports  and  special  investigations,  etc.,  and  will  report 
to  the  comptroller  direct. 

The  chief  clerk  will  be  held  responsible  for  the  detail  work 
in  the  various  rooms  and  departments  and  will  have  an  over- 
sight of  the  clerks  who  have  them  in  immediate  charge.  He 
will  have  general  charge  of  office  management:  the  deport- 
ment of  employees;  the  telephone,  mail,  and  office-boy  service; 
matters  relating  to  typewriting  machines;  general  steno- 
graphic work;  the  storage  of  records  and  other  general  work 
assigned  by  the  comptroller.  The  chief  clerk  will  report  to 
the  comptroller  direct. 

The  statistician  will  have  charge  of  all  outside  work  per- 
taining to  and  leading  up  to  the  cost  accounts,  which  he  will 


20     ORGANIZATION   OF  ACCOUNTING   DEPARTMENT 

prepare.  Thus  he  will  have  charge  of  individual  car  mileage 
records,  and  other  records  in  shops,  operating  offices,  and  the 
general  offices,  which  will  make  it  possible  to  determine  the 
costs  of  wheels,  motors,  gears,  trolley  poles,  etc.  He  will  also 
have  charge  of  all  statistical  work,  reporting  direct  to  the 
comptroller. 

Two  other  officials  of  the  comptroller's  staff,  both  con- 
nected with  the  express  or  freight  department,  report  to  the 
comptroller  direct  as  follows: 

The  express  claim  adjuster  has  charge  of  all  express 
claims  and  initials  all  vouchers  in  settlement  of  express 
claims ;  he  reports  direct  to  the  comptroller. 

The  head  clerk  of  the  express  and  freight  service  is 
charged  with  the  responsibility  of  checking  express  reports 
sent  in  from  agents  and  prepares  all  necessary  journal  entries 
pertaining  to  this  department  each  month.  He  is  responsible 
for  all  detail  work  conducted  in  the  express  service  in  the  gen- 
eral office,  reporting  direct  to  the  comptroller. 

The  head  bookkeeper  has  charge  of  all  bookkeeping,  with 
general  supervision  over  all  journals  and  general  ledgers,  and 
is  held  strictly  responsible  for  the  appearance  of  these  books. 
He  also  is  in  charge  of  the  authorization  ledgers  and  is  held 
accountable  for  all  the  detail  work  performed  on  the  various 
books  under  his  jurisdiction.     He  reports  to  the  chief  clerk. 

The  head  passenger  clerk  is  responsible  for  the  proper 
checking  of  the  work  which  belongs  to  the  passenger  service 
and  is  responsible  for  all  the  detail  work  performed  in  con- 
nection with  this  service.     He  reports  to  the  chief  clerk. 

The  head  voucher  clerk  has  charge  of  all  invoices  and  the 
vouchering  of  them,  and  reports  to  the  chief  clerk. 

The  head  bill  clerk  is  charged  with  the  preparation  and 
recording  of  all  bills.  He  is  held  responsible  for  the  prompt 
collection  of  the  same,  has  general  charge  of  all  detail  work 
performed  in  this  connection  and  reports  to  the  chief  clerk. 


THE  ACCOUNTING  DEPARTMENT         2I 

The  head  clerk  in  charge  of  the  expense  ledger  is  consid- 
ered responsible  for  the  correctness  of  the  expense  ledgers, 
the  general  stores  ledger,  and  all  detail  work  connected  with 
them.     He  reports  to  the  chief  clerk. 

The  head  pay-roll  clerk  has  charge  of  the  pay-rolls.  He 
is  responsible  for  all  detail  work  connected  therewith  and 
reports  to  the  chief  clerk. 

The  head  statement  clerk  has  charge  of  the  preparation  of 
all  operating  statements  and  other  statements  that  may  be 
assigned  to  him,  and  will  be  held  responsible  for  the  correct- 
ness of  such  statements.     He  reports  to  the  chief  clerk. 

The  head  stenographer  will  have  direct  charge  of  writing 
letters  and  statements,  and  look  after  the  detail  stenographic 
work  performed  in  the  office.    He  reports  to  the  chief  clerk. 

It  should  be  remembered  that  the  above  chart  and  the 
detail  distribution  of  duties  in  an  accounting  department  are 
given  merely  as  a  suggestion  to  show  how  such  a  plan  can  be 
worked  out.  The  reader  should  thoroughly  understand  that 
the  organization  of  an  accounting  department  of  a  street  rail- 
way company  depends  upon  the  size  of  the  company,  the  local 
conditions,  etc. 


Part  II — Accounting  Work  Mainly  Outside  the 
Comptroller's  Office 


CHAPTER    III 

PASSENGER      SERVICE  —  DIVISION      CASHIER'S 

ROUTINE 

Source  of  Street  Railway  Income 

The  most  important  part  of  the  accounting  work  of  a 
street  railway  company  is  in  connection  with  the  passenger 
business.  Manifestly  there  must  be  a  careful  system  of 
watching  and  accounting  for  the  daily  receipts.  Also  there  is 
need  of  constant  scrutiny  of  methods  of  operation  and  man- 
agement to  maintain  and  increase  the  efficiency  and  economy 
of  the  service.  This  is  particularly  the  case  with  a  large  com- 
pany operating  in  various  cities  under  the  handicap  of  diverse 
local  conditions. 

A  vast  amount  of  minute  record  work  is  involved  which 
must  be  done  with  substantial  uniformity  of  method  by  a 
great  number  of  people,  most  of  whom  are  outside  the 
accounting  department  and  engaged  primarily  in  other  duties. 

To  carry  this  work  through  swiftly  and  accurately  day 
after  day  necessitates,  first,  a  soundly  devised  system  of 
impersonal  records  and  reports,  elaborate  enough  to  cover  all 
contingencies  and  simple  enough  to  be  operated  by  even  inex- 
pert persons;  and  second,  an  unremittingly  careful  and 
patient  checking  of  these  reports  by  officials  who  are  expert. 

22 


PASSENGER— CASHIER'S    ROUTINE 


23 


Accounting  in  Division  Offices 

Part  of  the  accounting  m  connection  with  the  passenger 
service  is  done  in  the  division  offices  and  part  in  the  main 
office.  Both  parts  of  the  work  are  equally  essential  but  widely 
different  in  character. 

In  the  division  offices  the  original  records  are  made  and 
the  preliminary  checking  done.  After  the  records  have  been 
checked  here  and  partly  digested  they  are  checked  authorita- 
tively in  the  main  office;  this  final  scrutiny,  while  of  vital 
importance  and  requiring  close  and  expert  study,  takes  much 
less  time  than  the  first  checking  in  the  divisions.  In  the  main 
office  the  mass  of  material  is  also  digested  and  organized  to 
give  a  comprehensive  report  for  the  entire  road. 

The  work  which  the  division  offices  have  in  charge  is  of 
two  kinds:  First  and  most  important  is  that  of  keeping 
account  of  the  daily  passenger  receipts,  both  cash  fares  and 
tickets.  The  money  turned  in  by  conductors  must  be  counted 
daily  and  banked;  the  conductors'  reports  accompanying  it 
must  be  checked  and  corrected;  suitable  digests  and  reports 
must  be  sent  to  the  comptroller  at  the  main  office  daily, 
weekly,  and  monthly. 

Besides  this  main  work  the  division  accounting  officials 
attached  to  the  passenger  service  will  have  a  number  of 
special  duties,  all  in  some  way  growing  out  of  this  principal 
function,  but  involving  relations  with  other  departments  of 
the  company. 

Conductors'  Day  Cards 

The  accounting  for  the  daily  passenger  receipts  begins 
outside  of  the  office  with  the  passenger's  payment  of  fare. 
The  usual  fare  on  a  street  railway  is  five  cents,  paid  to  the 
conductor  and  rung  up  on  the  "clock"  register,  or  dropped 
into  an  automatic  fare-box.  At  the  close  of  his  working  day 
the  conductor  fills  out  a  day  card,  as  on  Forms  1  and  2. 


24 


"OUTSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 

CONDUCTOR'S  REPORT  TO  COMPTROLLER 

Punch  here| 

TW 

TIME  WORKED 

Pn.rh» 

DIN  ND 

Nn 

Hrs. 

Mia 

Transfers 

FnnVH 

X 

X 

Nn. 

itartprl 

X 

« 

No 

»         Issued 

X 

X 

Registe 

-Nn                          X                   X                  X                    X                      X 

X 

FnHf/i                     X                  V                 X                   X                    X 

X 

. 

St-ar+rH 

< 

< 

X                x                 X 

X 
X 

X 
X 

Total  fee 

isfrrwl 

XXX 

Trip 
No 

Car 

No 

Specify  Terminals&Ti  me 

REGISTERED  FARES 

Tickets 
SCash 
fares 

free 
Passes 

Register 

TRANSFERS 

Martinc 
From 

Tito 

Arrivinq 
At 

Time 

Col! 

Coll 

Call 

4*S 
Goll.Ce 

11  Coll 

7* 
Col 

8T 
Coll 

Total 

Collected 

Issued 

Headings 

1 

2 

1 

2 

1 

2 

1  n 
12 

13 

TOTAL 

Note  here  number  of                                              Tickets 

* 

Cash  Deo.  fares  Collectct 

Cash  Fares 

REGISTER  EXCHANGE  REPORT 
THESE  REPORTS  TO  BE  FILLED  OUT  WHEN  REGISTERS  ARE  TURNED  OVER  TO  ANOTHER  CONDUCTOR 


Reg.  No Reacting. 

Exchanged  at 

At 


_Sts. 


ReCdReg.No.. 
Reading. 


.In  Car  No.. 


Remarks-.  (Reason  for  exchange) 


.Reading. 


Exchanged  at. 
At 


_Sts. 


Rec'd  Reg. No.. 
Reading . 


.In  Car  No.. 


Remarks:  (Reason  for  exchange) 


Reg.  No Reading 

Exchanged  at ■$$ 

At Ste 


Redd  Reg. No.. 
Reading. 


.In  Car  No.. 


Remarks:  (Reason  for  exchange) 


SPECIFY  POINT  OF  TURNBACK 


Turned  Back  From    Time 


Mileage 


SPECIFY  BELOW  FREE  RftSSf-NGERS,  f. MPIOYEK  ETC  NOT  REGISTT>  Trip 


l*Coll  Z^Coll.  3^Coll  4*0311.  5*0311  6*Coll  7*Coll.  8*Co!l 


j  Reverse  side  of  above  Form 


13 


Remarks: 


Form  I.     Conductor's  Day  Card  (face  and  reverse). 
Size,  8z/2  X  9. 


PASSENGER— CASHIER'S   ROUTINE 


25 


THE  WESSEX  COMPANY 

CONDUCTOR'S  REPORT  TO  COMPTROLLER 

Punch  here  Cj 

Dnlr 

TIME  WORKED 

Run  No 

Hra 

Min. 

No.. 

.No. 

1 

Transfers  f. 
■>      5t 

X 

,  X 

Nn 

X 

X 

■                                             No 

"         Issued 

X               X 

Registe 

No                           XX 

F«n»-hr,x  No                      X 
»        -   Fnrf/vt*              4 

) 
i 
i 
i 

.. 

Started                X               X 

»        -  Startr/t*               S, 

Total  Registe                                        X 

Total  Registered*            $ 

Trip 
No. 

Car 
No 

Specify  Terminals  and  Time 

TOTAL 

Registnw 

FARES 

CASH 
FARES 

ticket: 

jndFREE 
PASSES 

REGISTER 
READINGS 

TARE-BOX 
READINGS 

TRANSFERS 

Starting 
from 

Time 

Arriving 
At 

Time 

Collected 

Issued 

Dollars 

03 

1 

2 

1 

2 

1 

z 

__ 

-rr 

12 

TOTAL 

TOTAL  PASSES 

REVENUE  PASSENGERS 
REVENUE  TICKETS 
CASH  FARES 

Note  here  number  of 

* 

0"=.n  Don  Fane.*  C*nlleH-<rl 

REGISTER  EXCHANGE  REPORT 
THESE  REPORTS  TO  BE  FILLED  OUT  WHEN  REGISTERS  ARE  TURNED  OVER  TO  ANOTHER  CONDUCTOR 


Rec'dPeg.No.. 
Reading. 


Jn  Car  No.. 


Remarks:  (Reason  for  exchange) 


Reg.  No Reading. 

Exchanged  at 

At 


A.M. 

-pfir 


ReCdReg.No.. 
Reading . 


.In  Car  No. 


Remarks;  (Reason  for  exchange) 


Reg.  No Reading 

Exchanged  at -p$= 

At Ste 


Recti  Reg.No.. 
Reading. 


.InCar  No- 


Remarks:  (Reason  for  exchange) 


8 

Trip 
No. 

SPECIFY  POINT  OF  TURNBACK 

Mileage 

Turned  Back  From 

Time 

9 



Remarks:. 


Form  2,    Conductor's  Day  Card  (face  and  reverse). 
Size,  %yz  X  9. 


26  "OUTSIDE"  ACCOUNTING  WORK 

These  day  cards  or  trip  records  give  an  itemized  report  of 
every  trip  made  during  the  day.  The  form  of  this  day  card 
will,  of  course,  vary  according  to  the  special  conditions  of 
different  roads,  but  the  principles  generally  observed  are  illus- 
trated in  Forms  I  and  2. 

The  system  herewith  described  presupposes  that  some 
cars  are  fitted  merely  with  the  usual  "clock"  registers  and 
others  fitted  with  the  fare-box  of  a  modern  type,  where  pas- 
sengers deposit  their  money.  Where  there  is  merely  a  regis- 
ter, Form  I  is  used ;  where  there  is  a  fare-box,  Form  2.  For 
suburban  cars  where  there  is  more  than  one  collection  during 
a  trip  the  fare-box  is  inconvenient  for  the  accounting  for 
fares  and  the  register  is  generally  installed  on  these  cars,  and 
accordingly  Form  I  is  used  for  the  conductor's  report.  Both 
forms  give  information  as  to  the  conductor's  name  or  badge 
number,  the  route,  the  trip,  the  number  of  the  car,  and  time 
of  run,  the  amount  of  cash  collected,  together  with  tickets 
and  passes  collected,  transfers  collected  and  issued,  and 
records  of  the  car  registers. 

Conductor's  Cash  Slip 

The  conductor  makes  out  also  a  cash  slip  (Form  3),  and  a 
ticket  envelope  (Form  4).  He  puts  the  tickets  and  passes 
which  he  has  collected  during  the  day  into  the  envelope  and 
encloses  the  day  card,  the  cash  slip,  the  ticket  envelope,  and  his 
cash  in  a  canvas  bag  which  he  turns  in  at  the  division  office  as 
he  goes  off  duty. 

Receiver's  Receipt 

In  some  division  offices  the  conductors  give  their  bags  to 
officials  called  receivers,  who  are  kept  on  duty  for  this  pur- 
pose day  and  night,  and  secure  from  them  a  receipt   (Form 

5)- 


PASSENGER— CASHIER'S   ROUTINE 


27 


Conductor 
Badge  I 

THE  WESSEX  COMPANY 
CONDUCTOR'S  CASH  SLIP 

Jo.                                    Da.ro 

191 

Run  No. 

DIVISION 

Dollars 

Cents 

RKO. 

Total 

ABOVE  MADE  UP: 

.Silver   Dollars 

Pen  n  irs 

^"^^'l^'l 

Total 

I 

Conductors  will  put  this  slip  in  bag  with  cash. 

Form  3.     Conductor's  Cash  Slip.     Size,  4X7. 


r/3 
H 

o 


CO    2 

W  O 

CO 

00 
< 
Pi 


O 


Date    

c 

e 

Passes   

■i_i 

■a 

u 

0 

0 

£ 

0 

3 

V 

*a 

bn 

s 

•a 

0 

C8 

U 

P3 

Form  4.    Ticket  Envelope.     Size,  3%  X  6. 


28 


"OUTSIDE"  ACCOUNTING  WORK 


THE  WESSEX  COMPANY 
CASH  AND  TICKET  RECEIPT 


Date. 


Run  No. 


Route- 
Conductor- 


Badge  No. 


Bills 


Silver  Dollars 


Halves 


Quarters 


Dimes 


Nickels 


Total 


Received  (_ 


Ticket  and  Pass- 
Envelopes 


Received  $. 


Receiver. 


Form  5.    Receiver's  Receipt.    Size,  4%  x  6}4. 

Conductors'  Drop-Safe 

In  other  offices  there  are  no  receivers  and  the  conductor 
deposits  his  bag  in  a  specially  contrived  box  in  the  local  office 
known  as  a  drop-safe.  This  is  an  ordinary  type  of  safe  with 
the  door  in  front  in  the  usual  way,  but  with  an  opening  cut 
in  the  top  with  a  cap-like  cover  arrangement.  When  the  door 
in  the  top  of  the  safe  is  open  there  is  a  receptacle  on  the  under 
side  of  this  small  door  in  which  a  bag  of  money  can  be  set. 
Then  when  the  handle  is  brought  over  and  the  door  closed  the 
money  drops  out  of  the  receptacle  down  into  the  safe. 

The  particular  feature  of  this  safe  is  that  the  cover  on  the 
receptacle  is  so  arranged  that  when  it  is  open  nothing  can  be 
taken  out,  any  more  than  from  a  United  States  mail  box. 


PASSENGER-CASHIER'S   ROUTINE 


29 


For  further  precaution,  a  bell  inside  the  safe  rings  as  the  bag 
of  money  drops  down. 

Receivers'  Handling  of  Conductors'  Cash 

The  receiver's  duty  is  to  count  the  money  turned  in  to 
him,  prepare  a  report  of  all  collections  on  Form  6,  and  deposit 
the  money  in  the  bank,  or  with  the  division  cashier. 


SHEET  Na 

THE  WESSEX  COMPANY 

RECEIVER'S  TALLY  SHEET 
OFFirF                                                                                                         iqi 

RUN 

NUMBER 

BADGE 
NUMBER 

Envelope  said 
to  Contain 

CASH 

y 

RUN 
NUMBER 

BADGE 
NUMBER 

Envelope  said 
to  contain 

CASH     • 

v' 

free 
Passes 

Rev. 
Tickets 

free 
Passes 

Rev 

Tickets 

Brt.  ForW 

1  from  sb 

et 

Amt.  Brt.  L 

P 

_ 

—  ■ — , 

| 1 

I 

Amt.  Carr 

edUp 

forward  1 

3  5heet  Nc 

... 

feceiver 

Form  6.    Receiver's  Tally  Sheet.    Size,  8%  X  14. 

A  report  of  cash  received  from  all  sources  is  sent  the 
comptroller  daily  by  the  cashier  on  Form  7. 

It  is  important  that  this  cash  report  for  the  comptroller 
should  be  dated  the  same  day  the  money  is  deposited,  in  order 
that  it  may  more  readily  be  checked  with  the  corresponding 
report  from  the  bank  to  the  treasurer  of  the  company,  which 
is  sent  in  on  Form  8. 


30 


OUTSIDE"    ACCOUNTING    WORK 


191 


THE  WESSEX  COMPANY 

Division    

Office  Date  

COMPTROLLER 

Head  Office 
Dear  Sir: 

I  beg  to  advise  you  that  my  bank  deposits  today  as  re- 
ported to  the  Treasurer  were  made  up  as  follows: 


Passenger    Receipts.. 

Ticket  Sales 

Chartered  Cars 

Electric  Dept.  Sales.. 

Gas  Dept.  Sales 

Accounts  Receivable. 


Total 


Yours  truly, 


Division   Cashier. 


Form  7.    Cashier's  Daily  Report  of  Cash.     Size,  5l/i  X  8. 


Date 19.... 

TREASURER 

THE  WESSEX  COMPANY 
Dear  Sir: 

Local   Cashier, 

at has  deposited  this 

day  to   the   credit   of  The   Wessex   Company    the    sum    of 
Dollars 


100 
account for 


Yours  truly, 
Teller. 

Receiving  tellers  will  please  confirm  the  figures  noted 
above  by  re-entering  against  their  signature. 


Form  8.     Daily  Cash  Report   from  Bank  to  Treasurer.     Size, 

iVz  x  sy2. 


PASSENGER— CASHIER'S   ROUTINE 


31 


Checking  Contents  of  Drop-Safes 

Where  drop-safes  are  used  instead  of  receivers  the  bags 
of  money  are  taken  from  the  safes  and  checked  against  the 
list  of  local  conductors  by  a  representative  of  the  cashier's 
office.  He  is  assisted  by  any  motorman  or  conductor  who  may 
be  available  for  the  purpose  at  the  time  and  this  employee  and 
the  cashier's  representative  sign  the  list  against  which  the 
packages  have  been  checked.  The  conductor  or  motorman 
assisting  in  this  should  be  paid  for  his  time. 

For  some  divisions  metal  tags  have  been  furnished;  for 
others  the  numbers  have  been  printed  on  the  money  bags.  In 
other  cases  a  list  (Form  9)  is  provided  upon  which  the  differ- 
ent conductors'  numbers  can  be  written  as  each  package  is 
removed  from  the  safe. 


THE  WESSEX  COMPANY 

This  Report  must  be  prepared  by  either  Conductor  or  Alotor- 
man  who  witnesses  the  number  of  bags  or  envelopes  taken 
from  safe. 

NO. 

NO. 

NO. 

NO. 

NO. 

NO. 

NO. 

NO. 

NO. 

I  have  this  day  witnessed extract  from 

conductor's  safe  bags  or  envelopes  said  to  contain  returns  of 
the  various  conductors  on  this  division  whose  numbers  are 
checked  off  above. 

Motorman 

Conductor No 


Date. 


191 


Clerk 
Cashier. 


Form  9.    Tally  Sheet  for  Conductors'  Bags>.    Size,  8^  X  14. 


.2  "OUTSIDE"   ACCOUNTING  WORK 

For  some  large  divisions  where  there  are  many  conductors 
a  printed  list  of  conductors'  badge  numbers  is  furnished  on 
Form  io. 

This  check  is  not  to  cover  the  amounts  contained  in  such 
packages  but  to  ascertain  only  whether  or  not  the  returns  of 
any  conductor  are  missing. 


THE  WESSEX  COMPANY 

DIVISION 

Cash  Bags 

were  taken 

from 

House  as 

checked  be 

. .  .A.  M.  on 

....19.... 

2602 

2652 

2702 

2752 

2802 

2852 

2604 

2654 

2704 

2754 

2804 

2854 

2606 

2656 

2706 

2756 

2806 

2856 

2608 

2658 

2708 

2758 

2808 

2858 

2610 

2660 

2710 

2760 

2810 

2860 

2612 

2662 

2712 

2762 

2812 

2862 

2614 

2664 

2714 

2764 

2814 

2864 

2616 

2666 

2716 

2766 

2816 

2866 

Signed Messenger. 

Signed 

Badge  No 

Received  by 

Clerk. 


Form  io.    List  of  Conductors'  Badge  Numbers. 
Size,  8y2  X  13. 

Register  and  Fare-Box  Readings 

As  a  check  on  the  conductors'  reports,  the  readings  of  the 
car  registers  are  examined  independently,  as  soon  as  the 
cars  reach  the  barns,  by  inspectors  responsible  to  the  barn 
foremen. 


PASSENGER— CASHIER'S    ROUTINE 


33 


When  a  car  reaches  the  barn  the  inspector  whose  duty  it 
is  copies  the  readings  on  Form  n — a  four-page  folder  giving 
the  numbers  of  the  cars  on  the  division,  with  spaces  for  read- 
ings, etc.  The  illustration  below  shows  one  page  of  this 
folder. 


THE  WESSEX  COMPANY 

DAILY   CAR    AND    REGISTER    RECORD 
OPEN    CARS 

Date 191 

CAR 

NO. 

REGISTER 
NO. 

REGISTER 
READINGS 

TAKEN  BY 
COND  NO. 

RUN 
NO. 

401 

I 



402 

^--V_^-^^^-^^-^^^_--^w^-s_----^_---0---^-^V-«» 

420 


421 


Form  II.    Inspector's  Register  Reading. 
Size,  4^2  X  o. 


This  form  is  merely  a  memo  for  the  inspector.  At  the 
end  of  his  working  day  he  copies  the  readings  on  Forms 
12  and  13,  according  to  whether  the  car  has  merely  the  clock 
register  or  has  both  register  and  fare-box,  and  sends  one  copy 
of  each  form  to  the  division  cashier  and  to  the  comptroller. 
If  a  car  from  another  division  has  come  into  the  barn,  the 
inspector  uses  Form  14  for  that  car  and  sends  a  copy  of  this 
form  to  the  division  cashier  and  another  copy  to  the  comp- 
troller. 

These  register  reports  must  reach  the  division  cashier's 
office  as  soon  as  the  conductors'  reports  to  which  they 
correspond. 


34 


'OUTSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 

REGISTER  REPORT 

LOCATION  C*  CAR  HOUSE , 0ATE 

No. 

Register 

at 
Starting 

Register 

at 

Ending 

Registered 

No. 

Register 

at 
5tarting 

Register 

at 
Ending 

Registered 

Amount  bf  aught  forw  3rd 

— ■ > 

— ^ 



Total 

Total 

Inspector 

Form  12.    Register  Reading  Report.     Size,  SXA  x  %lA- 


THE  WES5EX  COMPANY 

DAILY  CAR  AND  REGISTER  AND  FARE-BOX  RECORD 


DATE. 


Car 

No 


Register 
No. 


Register 
Reading 


Eare -box 
No. 


Tare- box 
Reading 


Taken  by 
Cond  No 


Form  13.    Fare-Box  and  Register  Report.    Size,  4  X  9. 
(One  page  of  a  four-page  folder.) 


PASSENGER— CASHIER'S    ROUTINE 


35 


Date. 


THE  WESSEX  COMPANY 

DIVISION  No.l 


Register 
Report 


FOREIGN  REGI5TERS  USED  ON 


LINES  ON  DATE  SPECIFIED 


Form   14.     Register  Reading  Report— for   Foreign   Car. 
9TA  X  IS- 


Size, 


Division  Cashier's  Routine 

The  first  part  of  the  daily  routine  of  the  division  cashier's 
office  is  to  check  and  correct  the  reports  from  conductors  and 
register  inspectors.  It  involves  (a)  counting  the  cash  unless 
this  has  been  done  already  by  receivers;  (b)  counting  tickets 
and  passes;  (c)  verifying  conductors'  statements  on  day 
cards,  cash  slips,  and  ticket  envelopes  by  comparing  the  regis- 
ter readings  as  reported  by  the  inspectors  at  the  barns;  (d) 
checking  transfers,  so  far  as  time  permits.  All  these  will 
occupy  a  large  proportion  of  the  first  day  following  that  cov- 
ered by  the  conductors'  reports. 

After  this  work  of  verifying,  the  following  digests  and 
reports  are  prepared  for  the  main  office  of  the  comptroller: 
a  report  of  passenger  earnings  (Form  16)  sent  to  the  comp- 


36 


"OUTSIDE"   ACCOUNTING  WORK 


troller  daily;  a  report  of  tickets  and  passes  collected  (Form 
15),  also  sent  daily;  a  report  of  ticket  sales  and  miscellaneous 
business  (Form  28),  sent  to  the  comptroller  four  times  a 
month;  a  monthly  balance  sheet  (Form  29);  and  various 
monthly  reports  such  as  Earnings  by  Routes  (Form  137), 
Car  Mileage,  Car  Hours  (Forms  150-152),  etc. 

To  complete  this  program  of  work  every  day — the  sum- 
mary of  daily  business  must  be  in  the  comptroller's  office  by 
the  second  day  after  the  business  described — in  addition  to 
the  other  duties  of  the  local  cashier,  requires  careful  systema- 
tizing of  the  various  tasks.  The  order  in  which  they  are 
best  taken  up  will  no  doubt  vary  with  local  conditions.  The 
order  here  given,  however,  may  be  used  to  advantage  either 
in  a  large  division  office  where  the  cashier  has  eight  or  ten 
clerks  who  oversee  several  hundred  cars  and  conductors,  or 
in  a  small  office  where  the  cashier  must  do  all  the  work 
unassisted. 

(1)  Conductors'  Cash 

In  a  division  office  where  drop-safes  are  used  check  the 
conductors'  returns  from  the  drop-safes  and  count  the  cash. 
Deposit  this  in  the  bank  and  make  the  proper  entries  in  the 
division  cash  book. 

In  a  division  office  where  there  are  receivers  this  will  have 
been  done  already — the  money  will  have  been  counted  and 
the  deposit  made  and  reported  to  the  division  cashier  as  stated 
above ;  or  the  money  for  deposit  will  be  put  into  a  safe  where 
the  cashier  can  get  it  when  he  comes  on  duty  in  the  morning, 
in  those  cases  where  the  receiver  finishes  his  work  and  goes 
off  duty  probably  by  4  o'clock  in  the  morning. 

(2)  Sorting  Day  Cards,  Cash  Slips,  etc. 

Sort  the  conductors'  day  cards  and  arrange  them  accord- 
ing to  the  schedule  of  regular  and  special  "runs"  for  the  day. 


PASSENGER— CASHIER'S    ROUTINE  37 

(The  cars  of  a  street  railway  operate  over  certain  fixed 
routes,  each  route  being  given  a  distinguishing  letter,  A,  B, 
C,  etc.,  for  convenient  reference.  The  conductors  and  motor- 
men  working  over  each  route  have  certain  "runs"  or  working 
periods.  For  instance,  John  Smith  goes  on  from  6  a.m.  to 
12  n.,  from  1  to  4  p.m.,  and  extra  from  7  to  10  p.m.) 

Sort  in  the  same  way  the  conductors'  cash  slips  and  ticket 
envelopes  and  also  the  register  and  fare-box  reports  sent  in 
from  the  inspectors  at  the  barns. 

(3)  Counting  Tickets  and  Passes 

Count  all  tickets  and  passes.  While  tickets  figure  less  in 
the  street  railway  system  here  described  than  in  some  other 
companies,  a  good  many  are  used  in  the  course  of  the  day  and 
the  different  classes  of  tickets  sold  at  different  rates  must  not 
be  confused. 

The  classes  used  by  one  company  are:  the  regular  five- 
cent  ticket  furnished  in  books  for  convenience  but  not  reduced 
in  price;  varieties  of  commutation  tickets,  such  as  monthly 
books  sold  for  ten  cents  per  day  and  good  only  between  cer- 
tain points;  twenty-five  ride  books  and  fifty  ride  books  good 
only  between  certain  points;  workingmen's  tickets  selling  at 
four  cents  each  in  books  of  a  hundred;  and  pupils'  tickets  sell- 
ing at  two  and  one-half  cents  each.     (See  page  49.) 

The  tickets  should  be  counted  face  upward  for  greater 
accuracy  and  the  clerks  should  make  sure  when  opening  the 
conductors'  envelopes  that  the  tickets  have  all  been  properly 
cancelled.  This  is  especially  important  with  reference  to  free 
"employees'  tickets." 

The  contents  of  each  envelope  are  counted  separately  at 
first  and  any  corrections  necessary  are  noted  on  the  outside  of 
the  envelope.  Then  the  tickets  are  grouped  according  to 
classes  or  distinguishing  letters  and  counted  again.  From 
these  figures  the  cashier  fills  out  Form  15,  "Dairy  Report  of 


38 


"OUTSIDE"   ACCOUNTING  WORK 


Tickets  and  Passes  Collected."  Finally,  the  tickets  are  made 
into  bundles  of  fifty  or  one  hundred  by  classes  and  sent  to  the 
comptroller's  office. 


THE  WESSEX  COMPANY 

Daily  Report  to  Comptroller  of  Tickets  and  Passes  Collected 

on Division. 

Date 191 .. . 


Class 


DESCRIPTION" 


All   Line   tickets 

Pupils    40    ride 

Jonesville-Foote's    Corner 

Walter's  Switch  and  Shady  Lane 

E.  Lake  50  ride 

Smithville  50  ride 

Winton-Georgetown    20    ride 

Raymond    50    ride 

Winton    50    ride 

So.    Watertown    50    ride 

Greensville 


Totals 


Total    Revenue   Tickets 


Employees'  Passes. 
Complimentary  ... 
Workmen  Strip  .  . 
Directors    


Total   Free  Passes 


This  Report  agrees  in  total  with  my 

Daily  Passenger  Earnings  Report. 


Signed. 


Division    Cashier. 


Form  15.     Cashier's  Daily  Report  of  Tickets.     Size,  5^    X    11. 


(4)  Compiling  Report  of  Daily  Passenger  Earnings 

Begin  writing  up  from  the  day  cards  (Forms  i,  2,  pages 
24,  25)  a  report  of  passenger  earnings  (Form  16). 

This  form  records  or  summarizes  the  conductors'  reports 
on  the  day  cards.  After  the  day  cards  have  been  properly 
sorted  by  badge  numbers  and  also  by  routes,  a  clerk  enters 


PASSENGER— CASHIER'S   ROUTINE 


39 


>- 
z: 

o 
o 

X 

UJ 
CO 
CO 

u 


u 

X 


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!^6 


X 


w 


P4 


P4 


u 


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fe 


40  "OUTSIDE"  ACCOUNTING  WORK 

each  on  this  form.  He  groups  the  day  cards  from  each 
"route"  together  and  copies  from  each  card  the  badge  num- 
ber, the  conductor's  name,  the  run  number,  the  car  number, 
the  readings  of  the  registers,  the  number  of  revenue  passen- 
gers, of  free  tickets,  of  revenue  tickets,  the  amount  of  cash 
collected  on  the  run,  and  the  number  of  transfers  issued  and 
collected. 

For  the  fare-box  readings  shown  on  the  day  cards,  use  the 
blank  columns  to  the  right  of  the  "Transfers  Issued"  column; 
using  the  first  two  columns  between  the  double  ruling  for  the 
amount  of  fares  deposited  in  the  boxes,  and  putting  the  num- 
ber of  the  fare-box  in  the  last  column. 

This  is  a  most  important  record,  which  is  used  in  nearly 
all  subsequent  operations;  it  should  be  written  up  as  early  as 
possible  in  the  day.  When  one  or  more  sheets  of  it  are  com- 
pleted, the  work  of  checking  and  verifying  this  day  card 
record  can  begin. 

(5)  Verification  of  Day  Card  Record 

Check  and  verify  the  day  card  record  as  now  entered  upon 
Form  16  by  comparing  it  with  (a)  the  ticket  envelopes,  (b) 
the  register  and  fare-box  reports.  The  two  processes  may  be 
carried  on  successively  or,  if  there  are  several  sheets  of  Form 
16,  at  the  same  time. 

(a)  Compare  Form  16  with  the  ticket  envelopes,  now  cor- 
rected by  counting  the  tickets,  to  see  that  the  number  of  tickets 
and  passes  received  tallies  with  the  number  shown  on  the  day 
cards.  Any  differences  or  shortages  are  charged  to  the  vari- 
ous conductors;  that  is,  if  a  conductor  turns  in  one  ticket 
more  than  his  report  calls  for,  his  report  should  be  corrected 
to  show  the  actual  number  of  tickets  turned  in  and  the  amount 
of  his  cash  reduced  by  the  value  of  the  ticket,  five  cents.  If 
a  conductor  is  short  one  ticket,  his  report  should  be  corrected 
to   show   the  actual   number   of   tickets   turned   in,  and   the 


PASSENGER— CASHIER'S    ROUTINE  4I 

amount  of  cash  increased  to  the  amount  of  cash  he  should 
have  turned  in. 

(b)  Compare  Form  16  with  the  register  and  fare-box 
reports  and  with  the  day  cards.  Summarize  the  fares  on  the 
register  reports  and  the  fare-box  reports,  using  the  letter  of 
the  route  for  quick  reference  to  the  day  cards  in  locating 
errors,  all  of  which  must  be  located.  After  all  errors  have 
been  found  and  corrected  and  the  conductors'  reports  have 
been  footed,  compare  them  with  Form  16.  If  the  work  is 
done  correctly  the  total  of  the  column  "Registered"  on  Form 
1 6  should  agree  with  the  sum  of  all  fares  as  shown  by  the 
summary  of  register  and  fare-box  reports.  Form  16  is  a  bal- 
ance by  itself  in  the  following  way: 

The  total,  "Revenue  Passengers,"  which  includes  cash 
fares  and  cash  tickets,  plus  the  total,  "Free  Passes,"  should 
agree  with  the  total  "Registered."  The  amount  of  cash  is 
proved  by  subtracting  the  total  "Tickets"  from  the  total  "Reg- 
istered" and  multiplying  the  difference  by  five  cents.  This 
applies  to  lines  where  transfers  are  not  rung  up  on  the  cash 
register.  When  they  are  so  rung  up  the  only  change  would 
be  that  the  total  "Registered"  would  equal  the  three  columns, 
"Revenue  Passengers,"  "Free  Passes,"  and  "Transfers 
Collected." 

Reconciliation  of  Register  Reports 

The  register  and  fare-box  reports  on  Forms  12  and  13 
are  apt  to  be  imperfect  in  two  points;  first,  with  reference  to 
cars  which  have  gone  from  one  division  to  another,  as  hap- 
pens very  frequently;  second,  with  reference  to  registers  on 
which  fares  have  been  rung  up  in  the  process  of  repair  in  the 
shops.  To  cover  the  first  of  these  points,  the  following  recon- 
ciliation report  is  made  out  by  the  cashier  from  the  regular 
register  reports  on  Form  17.  This  reconciliation  report  should 
be  sent  to  the  comptroller  within  two  days. 


42 


'OUTSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 
Reconciliation  of  Register  Report  and  Form  It 

Less 

Add 

1.  Total  of  Corrected  Register  Report 

2.  Registers    for    Which    Readings    are    not 
Complete 



3.  Fares  Applicable  to  Other  Div. 

4.  Fares  Applicable  to  Other  Days 

5.  Fare  Box  Charges 

6.  Repair  Report 

7.  Total  Per  Form  16 

8.  Miscellaneous  Corrections  Included  in  Iteml 

^ 

^--^— -^v_~ --^_^-x_- --v-_^-^_----\_^-— \_^-              I— JH-^!S-^                ^         ""*   s""~  *"*    i~^^-w-"^ 

Note — Continue  Over  if  necessary 

Form  17.    Reconciliation  of  Register  Reports.     Size,  5T/2  X  12. 


PASSENGER— CASHIER'S   ROUTINE 


43 


This  form  may  call  for  some  comment.  The  "total"  of 
(i)  covers  the  corrections  listed  in  (2)  to  (8)  lower  on  the 
page.  Under  (2)  should  be  given  the  numbers  of  registers 
for  which  but  a  single  reading  has  been  turned  in  on  the  regis- 
ter reports,  and  with  the  number  of  the  register  should  be 
given  the  single  figure  which  has  been  reported.  (3)  refers 
to  registers  for  which  both  readings  appear  on  the  regular 
reports  but  for  which  some  part  of  the  mileage  is  applicable 
to  other  divisions.  The  items  "added"  would  represent  fares 
on  the  regular  day  cards  for  which  no  readings  appeared  on 
the  register  reports.  (4)  refers  to  items  not  previously 
reported  on  earlier  days  and  adjustments  on  Form  16  of  previ- 
ous unaccounted  fares.  (8)  refers  to  cases  not  provided  for  in 
the  other  points.  Regarding  (5)  and  (6)  some  further  com- 
ment is  necessary. 


THE  WESSEX  COMPANY 

Daily  Report  to  the  Comptroller  of  Fares  Registered  on 
Account  of  Repairs  or  in  the  Car  Barn 

List  below  Registers  out  of  order,  or  Registers  upon  which 

fares  have  been  recorded  in  barn,  showing  number 

of  fares  thus  recorded 

Reg.      From 
No.     Car  No. 

Read- 
ing 

Put  In 
Car  No. 

Read- 
ing 

No.  of 

Fares 

Recorded 

REMARKS 

(Why  Fares  were) 

RECORDED 

1 

1 

^^^% 

■^--^-— ^                                       ~^T~' 

1                                    1 

This  report  to  be  forwarde 

to  Comptroller  promptly 

Copy  to  the  Local  Cashiei 

Sip- 

d 

each  day. 

ned 

Form  18.    Register  Repair  Report — Daily.     Size,  5^  X  %y2. 


44  "OUTSIDE"   ACCOUNTING  WORK 

Repairing  Car  Registers 

When  car  registers  are  repaired  in  the  shops  a  daily  report 
of  fares  which  have  been  rung  up  in  the  process  of  repairing 
is  furnished  to  the  division  cashier.  For  this  purpose,  Form 
18  is  used. 

The  readings  before  and  after  ringing  and  the  reasons  for 
registering  should  be  given.  The  comptroller's  office  will 
then  be  able  to  check  the  ending  numbers  of  the  fares  regis- 
tered against  the  starting  numbers  of  the  following  day  and 
thus  adjust  any  discrepancies  which  may  appear.  This  form 
should  be  signed  by  the  foreman  in  charge,  or  the  repairman, 
and  should  be  forwarded  each  day  with  the  register  reports 
tvhich  are  affected  to  the  comptroller's  office. 

Fare-Box  Reports  and  Reconciliation 

It  is  important  to  account  separately  for  cash  fares  depos- 
ited by  the  passengers  in  the  fare-boxes.  The  fare-box  regis- 
ters in  dollars  and  cents,  the  difference  between  two  readings 
equalling  the  cash  actually  in  the  box  at  any  one  time.  The 
total  amount  shown  on  Form  16  as  fare-box  collections 
should  be  added  up  and  reconciled  with  the  fare-box  register 
report,  as  explained  on  page  34,  following  the  same  pro- 
cedure as  is  followed  in  reconciling  the  clock  register  report. 
The  cash  shown  by  the  fare-box  register  should  then  be  com- 
pared with  the  cash  charged  to  the  conductor  through  the 
clock  registration. 

Conductors  are  to  be  charged  with  the  highest  registra- 
tion of  cash  fares  disclosed  on  the  clock  register  or  on  the 
fare-box.  Thus,  assuming  that  after  checking  a  conductor 
with  the  register  report  it  was  found  that  the  amount  to  be 
accounted  for  in  cash  was  $25  but  the  fare-box  showed  that 
$25.50  was  deposited  therein,  it  would  be  necessary  to  charge 
the  conductor  with  fifty  cents.  If  the  conductors  properly 
account  for  their  fares,  the  final  reconciling  charge  to  the  con- 


PASSENGER— CASHIER'S   ROUTINE 


45 


ductor  for  fare-box  registration  should  of  course  agree  with 
the  cash  charge  after  the  clock  register  report  has  been  recon- 
ciled, since  all  fares  deposited  in  the  fare-box  should  have 
been  rung  up  on  the  clock.  In  practice,  however,  there  will 
be  discrepancies. 

In  order  to  arrive  at  self-proving  totals,  in  the  case 
instanced  above  ten  fares  should  be  added  to  the  grand  total 
registered  in  "Revenue  Passenger"  column  and  fifty  cents  to 
the  "Cash"  column  and  the  conductor's  name  should  be  men- 
tioned. This  conductor  would  appear  on  the  "Short"  list  for 
the  difference,  if  any,  between  $25.50  and  his  remittance.  On 
the  other  hand,  if  the  fare-box  registration  showed  $24  and 
the  clock  $25,  no  further  accounting  would  be  necessary  in 
this  case. 

The  items  added  to  the  bottom  of  the  form  for  excess  reg- 
istration of  the  fare-box  should  be  added  to  the  respective 
routes  for  statistical  purposes  and  this  can  readily  be  done  if 
the  route  letter  or  other  characteristic  is  shown  for  each  item. 

(6)  Checking  Passenger  Earnings  Report  by  Day  Card 

Now  that  an  accurate  record  of  the  day's  passenger  busi- 
ness has  been  obtained,  the  cashier  proceeds  to  make  neces- 
sary digests  and  reports  thereof.  First,  in  order  to  note  and 
arrange  for  the  necessary  adjustments  of  cash  with  individ- 
ual conductors,  compare  the  conductors'  day  slips  with  Form 
16.  Where  differences  have  been  found,  enter  them  on  the 
"Short  and  Over  List"  (Form  19).     (See  page  48). 

Errors  regarding  cash  returns  must  be  rectified  promptly 
by  the  conductor.  If  he  is  short,  he  must  pay  what  he  owes; 
if  he  is  over,  the  excess  amount  he  has  paid  in  must  be 
refunded  to  him.  These  adjustments  and  collections  are  part 
of  the  daily  duty  of  the  division  cashier.  When  the  money 
due  from  the  conductor  has  been  paid  in,  the  fact  is  indicated 
in  the  cashier's  report  to  the  comptroller. 


45  "OUTSIDE"   ACCOUNTING   WORK 

(7)  Correcting  Day  Cards 

Change  the  day  cards  to  conform  with  any  adjustments 
of  tickets  or  cash  that  may  be  noted  on  Form  16. 

(8)  Reporting  Passenger  Earnings  by  Routes 

On  Form  16  the  conductors'  day  card  reports  will  have 
been  arranged  by  routes — those  of  one  route  together.  Form 
16  should  now  be  footed  by  routes  and  the  total  for  each 
route  entered  in  a  daily  record  book  of  the  earnings  by  routes 
within  a  division.  A  report  of  this  matter  is  to  be  sent  to  the 
comptroller's  office  monthly  on  Form  137  (Chapter  XXI). 

(9)  Checking  Transfers 

To  check  all  transfers  thoroughly  would  involve  an 
immense  amount  of  labor  and  an  expense  quite  dispropor- 
tionate to  the  money  which  might  here  and  there  be  saved. 
On  the  other  hand,  it  is  not  wise  to  disregard  them  entirely. 
A  useful  method  is  to  try  to  check  each  conductor  about  once 
a  week.  The  transfers  are  turned  in  by  the  conductors  with 
their  cash  and  tickets  in  envelopes  made  for  the  purpose. 
They  should  be  sorted  by  the  badge  numbers  and  the  trip 
should  be  noted  as  shown  on  the  envelope  and  compared  with 
the  running  schedule.  If  the  car  is  running  on  schedule  time 
the  various  transfer  points  are  noted  and  the  direction,  time, 
destination,  and  run  are  all  checked  so  that  the  cashier  may 
be  reasonably  sure  that  the  use  of  the  transfer  was  proper. 
All  errors  or  misuse  of  transfers  should  be  immediately 
reported  to  the  division  manager. 


CHAPTER     IV 

PASSENGER     SERVICE  —  SPECIAL     DUTIES     OF 
DIVISION    CASHIER 

Relation  of  Routine  Work  and  Special  Duties 

As  has  been  said  in  connection  with  the  routine  work 
sketched  above,  a  report  of  passenger  earnings  and  a  report 
of  tickets  and  passes,  collected  are  prepared  for  the  comp- 
troller's office  daily. 

The  other  reports  sent  to  the  comptroller  once  a  period 
or  once  a  month,  although  based  chiefly  on  the  routine  work, 
involve  also  some  of  the  special  duties  assigned  to  the  cash- 
ier's office,  and  can  best  be  described  after  these  other  duties 
have  been  treated. 

Collecting  Conductors'  "Shorts" 

It  is  the  duty  of  the  division  cashier  to  collect  conductors' 
"shorts."  As  this  matter  often  causes  much  annoyance  in 
street  railway  accounting,  the  following  suggestions  may  be 
of  use: 

A  list  of  "shorts"  and  "overs"  should  be  prepared  in  dupli- 
cate or  triplicate,  according  to  local  conditions,  on  Form  19. 
One  copy  should  be  posted  as  soon  as  possible  on  the  black- 
board in  the  conductors'  and  motormen's  room  at  the  barn, 
and  another  copy  placed  in  the  hands  of  the  representative  of 
the  cashier's  office  who  is  to  collect  the  "shorts."  The  cashier 
will  see  that  "overs"  are  returned  to  conductors  as  soon  as 
possible,  taking  the  money  from  the  "shorts"  or  from  receipts 
for  tickets  or  cash  fares,  and  requiring  the  conductors  to  sign 
the  "over"  list. 

47 


48 


"OUTSIDE"   ACCOUNTING  WORK 


As  to  the  "shorts,"  if  a  conductor  does  not  pay  up  within 
at  least  a  day  or  so  before  pay  day,  the  shortage  should  be 
called  to  his  attention  before  he  is  paid.  If  the  cashier  is 
absolutely  sure  that  no  mistake  has  been  made,  he  has  the 
right  to  deduct  the  amount  of  shortage  from  the  conductor's 
pay.  This  should  be  done,  if  convenient,  when  putting  up  the 
pay  envelope,  making  notation  of  the  fact. 


THE  WESSEX  COMPANY 
OFFICE  OF  THE  COMPTROLLER 

Ml 

REPORT  OF  CONDUCTORS  SHORT  AND  OVER 

CONDUCTOR 

BADGE 
NO. 

SHOUT 

OVER 

Passes 

Tickets 

Cash 
Fares 

Amount 

Passes 

T.ckets 

Cash 
Fanes 

Amount 

L ' 

— 

Totals 

Comptroller 

Form  19.    Short  and  Over  List.     Size,  7  X  n. 


Handling  of  Doubtful  Cases 

In  cases  where  the  conductor  is  "short,"  but  denies  the 
fact,  and  the  cashier  is  somewhat  in  doubt  (although,  of 
course,  there  should  be  no  doubt,  as  the  records  should  prove 
it)  it  is  best  to  pay  the  conductor  his  full  wages  on  pay  day. 
But  in  all  cases  the  division  manager  should  be  notified  and 


PASSENGER— CASHIER'S    SPECIAL  DUTIES 


49 


all  the  facts  in  the  case  should  be  submitted  to  him  so  that  he 
can  help  to  decide  what  action  should  be  taken.  The  matter 
should  be  attended  to  promptly.  The  cashier's  reports  to  the 
comptroller  should  show  in  all  cases  where  a  shortage  has 
been  outstanding  more  than  a  week  that  the  matter  had  been 
referred  to  the  division  manager.  In  addition,  the  cashier 
should  write  to  the  comptroller  giving  full  information  and 
wait  for  advice. 

A  bag  full  of  receipts  is  sometimes  lost,  the  conductor 
asserting  that  he  deposited  the  money  in  the  drop-safe  in  the 
usual  way.  If  the  cashier  is  entirely  satisfied  that  the  con- 
ductor did  not  deposit  the  money,  it  will  be  proper  to  deduct 
from  the  man's  wages  on  pay  day  the  amount  which  he  pro- 
fesses to  have  deposited;  or  if  the  amount  concerned  is  in 
excess  of  his  wages,  the  conductor  should  receive  no  pay.  The 
facts  should  be  reported  to  the  division  manager's  office  and 
also  to  the  comptroller. 

If  the  case  is  at  all  doubtful,  the  conductor's  wages  should 
not  be  held  up  but  he  should  be  paid  and  reported  as  in  the 
case  of  minor  shortages.  In  all  cases  of  shortages  of  conduc- 
tors, the  company  should  be  extremely  careful  when  deduc- 
tions from  wages  are  made.  No  employee  ought  to  be  forced 
to  bring  suit  for  wages  when  the  company  has  a  claim  pend- 
ing against  him,  unless  the  company's  claim  is  so  clear  that  no 
unprejudiced  person  could  prove  the  contrary. 

Conductors  who  are  habitually  short  should  be  referred  to 
the  manager,  as  it  is  undesirable  for  them  to  acquire  the  habit 
of  holding  out  purposely,  knowing  that  the  shortage  will  be 
deducted  on  pay  day.  The  cashier  should  keep  a  memoran- 
dum of  his  reports  to  the  division  manager  to  show  that  the 
company  has  done  its  part. 

School  Children's  Tickets 

Another  duty  of  the  division  cashier  is  connected  with  the 


co  "OUTSIDE"   ACCOUNTING  WORK 

sale  of  tickets.  The  use  of  tickets  in  the  street  railway  busi- 
ness varies  with  different  roads,  as  has  been  stated.  In  con- 
nection with  the  system  here  outlined,  the  most  important 
aspect  of  the  subject  is  that  tickets  for  school  children  are 
required  by  the  state  law  to  be  sold  at  half  the  regular  rate. 
While  requiring  a  reduced  rate,  however,  the  law  permits  the 
road  to  make  certain  conditions  and  prescriptions.  It  is 
the  duty  of  the  division  cashier  as  the  representative  of  the 
accounting  department  to  see  that  these  conditions  are 
observed. 

The  cashier  must  see  that  these  pupil-tickets,  which  are 
sold  forty  for  a  dollar,  are  sold  only  to  the  right  persons, 
namely,  to  students  not  over  eighteen  years  of  age  attending 
a  school  where  no  tuition  is  charged.  The  application  must  be 
made  by  the  student  in  person  on  Form  20,  provided  for  the 
purpose. 

The  form  must  be  signed  by  parent  or  guardian  and 
approved  by  the  principal  or  teacher  of  the  school.  In  the 
case  of  very  young  children,  the  application  may  be  made  by 
the  parent  or  guardian,  who  will  sign  the  child's  book  again 
as  guardian.  In  such  a  case  the  approval  of  the  division  man- 
ager or  of  the  cashier  must  be  obtained.  Not  more  than  one 
book  of  forty  tickets  may  be  sold  to  one  person  at  a  time,  bu»- 
not  more  than  one  application  a  year  is  necessary.  These 
applications  should  be  filed  where  they  may  be  easily  referred 
to.  When  the  forty  tickets  have  been  used,  the  covers  of  the 
books  must  be  taken  up  by  the  conductor,  turned  in  to  the 
cashier,  and  sent  on  to  the  comptroller's  office. 

School  children's  tickets  are  not  transferable  and  must  be 
used  only  at  proper  times.  They  are  good  only  between  7:30 
a.m.  and  5:3°  P-M-  on  school  days  and  are  void  after  the 
close  of  the  school  year.  Every  book  of  tickets  accordingly 
must  bear  on  its  cover  the  name  of  the  holder,  the  number, 
and  date  of  sale.     Each  year  a  different  color  should  be  used. 


PASSENGER— CASHIER'S    SPECIAL   DUTIES 


51 


THE  WESSEX  COMPANY 
APPLICATION   FOR   PUPIL'S   TICKET 


I   hereby   make   application    for   a   Pupil's  40   ride   Ticket, 
subject  to  conditions  printed  on  the  back  hereof. 


Name  of  Pupil. . 

Address 

Name  of  School. 
Signed 


(Parent  or  Guardian) 


I  hereby  certify  that  the  above  named 


is  a  member  of  the School 

Signed. 


Principal   or   Teacher. 


No  Application  will  be  accepted  unless  certified  to  by 
Principal  or  Teacher. 


No.  of  Ticket  Issued 

(See  conditions  on  the  back  of  this  application.) 


Form   20.      (a)    Application    for    Pupil's   Ticket    (face).      Size, 
5/2  X  8H- 


52 


"OUTSIDE"   ACCOUNTING  WORK 


If  tickets  are  presented  by  the  wrong  person  or  at  the 
wrong  time  they  will  not  be  honored  for  passage  and  the  book 
will  be  taken  up  by  the  conductor. 

Unused  portions  of  such  tickets  may  be  redeemed  at  the 


CONDITIONS 

In  consideration  of  the  reduced  rate  at  which  this  ticket 
is  sold,  it  is  expressly  understood  that  it  is  issued  exclu 
sively  for  Pupils  under  18  years  of  age  attending  a  Public 
school  who  pay  no  tuition  fee,  and  is  to  be  used  ONLY  in 
going  to  and  from  school,  on  days  in  which  said  schools  are 
in  session,  and  between  the  hours  of  7.30  A.  M.  and  5.30  P.  M 

The  ticket  will  be  honored  only  in  the  hands  of  the  Pupil 
to  whom  it  is  sold  and  whose  name  will  be  written  plainly 
on  the  cover.  The  Ticket  is  nontransferable  and  will  be 
taken  up  by  the  Conductor  if  presented  by  other  than  the 
purchaser. 

Unused  portions  of  tickets  will  be  redeemed  if  of  sufficient 
redemption  value — the  redemption  value  to  be  determined 
by  deducting  from  the  original  cost  of  the  ticket  an  amount 
produced  by  multiplying  the  number  of  coupons  used  by 
five  cents. 

The  person  accepting  this  Ticket  agrees  to  comply  with 
above  conditions. 

THE  WESSEX  COMPANY. 


Form  20.     (b)  Application  for  Pupil's  Ticket  (reverse). 


cashier's  office  on  the  same  basis  as  commutation  tickets, 
namely,  charging  five  cents  for  each  ride  used.  If  more  than 
twenty  rides  have  been  used,  the  holder  is  not  entitled  to  the 
redemption. 

The  division  cashiers  have  no  authority  to  make  any 
exceptions  to  these  rules,  but  must  refer  all  requests  for 
exceptions  to  the  traffic  agent  of  the  company. 


PASSENGER— CASHIER'S    SPECIAL   DUTIES 


53 


Chartered  Cars 

A  matter  of  importance  on  street  railways  is  that  of 
special  cars  (or  chartered  cars)  run  sometimes  without  charge 
and  sometimes  for  pay.  To  keep  a  record  of  this  service  as 
a  check  for  the  accounting  department  is  an  important  func- 
tion of  the  division  cashier. 

A  method  of  handling  this  matter  may  be  illustrated  by  a 
summary  of  instructions  issued  to  division  managers  and  divi- 
sion cashiers. 

Instructions  to  Division  Manager 

When  a  special  car  is  asked  for  by  any  person,  whether 
revenue  is  to  be  received  or  not,  application  must  be  made  to 
the  division  manager,  who  makes  the  necessary  arrangements, 
filling  out  Form  21,  "Chartered  Car  Order." 


Division. 
To 


THE  WESSEX  COMPANY 
CHARTERED  CAR  ORDER 

Date 


Single 


Double 


Truck    Car. . .  .For. 


Leave     

Destination 
Return  to. . 
Remarks   . . 


Charges Collect.     Paid  at  Office. 

Send    Bill   to 

Original  to  Dispatcher 


Manager 


Form    21.      Chartered    Car    Order     (in    quadruplicate).      Size, 

TA  x  5%- 


These  orders  come  fifty  in  a  book,  numbered  consecutively 
and  in  quadruplicate   form  on  different  colored  paper.     As 


c4  "OUTSIDE"   ACCOUNTING  WORK 

they  are  in  series  the  manager  should  be  careful  not  to  spoil 
any  copies.  If  he  should  accidentally  spoil  one  and  be  com- 
pelled to  issue  a  new  order,  he  should  cancel  those  he  has 
spoiled  by  writing  the  word  "Cancelled"  across  the  face  of 
them  and  turn  all  four  copies  of  the  spoiled  order  over  to  the 
division  cashier. 

The  original  and  the  duplicate  copies  should  be  sent 
through  to  the  dispatcher  or  to  the  assistant  manager  of  the 
division,  as  the  case  may  be,  who  retains  the  original  for  his 
riles  and  delivers  the  duplicate  to  the  conductor  who  is  to  have 
charge  of  the  car. 

The  conductor  will  collect  the  amount  specified  if  the  order 
is  marked  "Collect"  and  turn  the  amount  so  collected, 
together  with  the  duplicate  copy  of  the  order,  over  to  the 
cashier.  If  no  collection  is  to  be  made  on  the  car  the  conduc- 
tor will  give  merely  the  duplicate  copy  to  the  cashier,  making 
out  a  regular  day  card  in  addition. 

The  triplicate  copy  of  the  order  should  be  handed  to  the 
cashier  as  soon  as  possible  as  an  advice  to  him  that  the  service 
is  being  performed.  The  money  specified  should  be  received 
from  the  conductor  or  paid  at  the  office,  unless  credit  is 
extended  to  the  party  chartering  the  car. 

The  quadruplicate  copy  is  left  bound  in  the  book  to  be 
used  as  a  file  for  the  division  manager  who  issued  the  order. 
When  all  the  forms  in  the  book  are  used  up,  the  cover  with 
the  quadruplicate  copies  of  all  the  orders  is  to  be  returned  to 
the  comptroller's  office  and  filed. 

Manager's  Procedure — "Foreign"  Cars 

When  the  division  manager  is  asked  to  run  a  chartered 
car  from  a  point  on  his  own  division  to  one  on  another  divi- 
sion, he  should  issue  the  order  in  the  usual  way  but  should 
indicate  also  the  names  of  the  divisions  over  which  the  car  is 
to  be  run.    He  should  then  prepare  an  extra  copy  of  the  order 


PASSENGER— CASHIER'S   SPECIAL   DUTIES 


55 


on  blank  paper,  marking  it  with  the  same  number  as  the  regu- 
lar chartered  car  order  blank,  and  send  this  extra  copy  to  the 
manager  of  the  other  division.  In  case  the  car  is  to  be  run 
over  more  than  one  other  division,  such  a  copy  should  be  sent 
to  the  manager  of  each  division  concerned. 

The  manager  of  a  connecting  division  over  whose  lines 
the  car  is  to  be  run  will  arrange,  on  receipt  of  the  order  from 
the  other  manager,  for  the  necessary  men  and  the  movement 
of  the  car  in  the  usual  way.  He  will  himself  issue  an  order 
on  Form  21.  On  the  line  "Charges"  he  will  write  "Mileage 
proportion"  and  on  the  line  "Send  Bill  to"  he  will  put  the  num- 
ber of  the  chartered  car  order  received  from  the  other  divi- 
sion, with  the  name  of  that  division.  He  will  attach  to  the 
copy  of  his  own  order  to  be  sent  to  his  own  division  cashier, 
the  order  received  from  the  connecting  manager,  being  care- 
ful not  to  put  on  the  order  he  himself  issues  any  amount  to 
be  collected. 

Payment  for  Chartered  Cars 

Payment  for  chartered  cars  should  be  made  in  advance  at 
the  division  office,  or — and  this  is  a  better  plan — to  the  con- 
ductor on  the  car.  To  furnish  chartered  car  service  on  credit  is 
not  advisable:  it  necessitates  issuing  bills  from  the  comptrol- 
ler's office,  and  there  is  often  difficulty  in  collecting  the  money. 
The  rule  of  the  company  regarding  the  extension  of  credit  for 
any  service  is  that  the  person  desiring  credit  shall  make  a 
written  application  to  the  office  of  the  comptroller,  where  his 
standing  is  looked  up.  As  this  rule  is  sometimes  difficult  to 
apply  under  the  conditions  of  chartered  car  service,  a  certain 
discretion  is  left  with  the  division  manager.  Credit  should 
be  allowed,  however,  only  after  the  manager  has  personally 
interviewed  the  applicant  and  satisfied  himself  that  there  is 
some  sufficient  reason  why  payment  should  not  be  made  in 
accordance  with  the  rule  of  the  company. 


-6  "OUTSIDE"   ACCOUNTING  WORK 

A  method  often  followed  is  that  of  furnishing  a  car  at  an 
agreed  price,  with  the  provision  that  regular  fares  will  be 
collected  from  the  passengers  by  the  conductor  and  applied 
to  the  payment  of  the  agreed  price;  after  which  a  bill  will  be 
issued  for  the  balance. 

Instructions  to  Division  Cashier 

The  triplicate  copy  of  the  chartered  car  order  will  consti- 
tute a  notice  to  the  cashier  from  the  division  manager  that  this 
car  is  to  be  run,  and  that  the  amount  of  money  called  for  on 
the  order  is  to  be  paid  at  the  cashier's  office  by  the  conductor 
or  person  ordering  the  car,  or  payment  is  to  be  made  by  bill. 

The  duplicate  copy  of  the  order,  given  to  the  conductor, 
will  be  turned  in  to  the  cashier  after  the  service  has  been  per- 
formed, together  with  the  money,  if  the  conductor  has  col- 
lected it,  and  in  addition  a  regular  day  card.  This  duplicate 
should  be  compared  with  the  triplicate  and  filed  in  the  cash- 
ier's office. 

The  triplicate  copies  of  chartered  car  orders  should  be 
treated  as  follows:  Those  orders  for  which  the  money  has 
been  paid  in  should  be  held  by  the  cashier  until  the  end  of  the 
week  when  he  makes  his  ticket  sale  report.  He  should  then 
report  the  amount  collected  for  chartered  cars  on  Form  28 
(see  page  75),  giving  the  chartered  car  numbers,  and  attach- 
ing to  the  form  the  triplicate  copies  of  such  orders. 

When  collection  is  to  be  made  by  sending  a  bill  the  cashier 
should  forward  the  triplicate  immediately  to  the  comptroller 
with  a  letter  of  enclosure,  so  that  a  "bill  collectible"  can  be 
made  out.  When  the  service  is  paid  for,  if  it  is  paid  at  the 
division  office,  it  should  be  reported  as  the  collection  of  a  bill 
collectible,  giving  reference  to  the  bill  number. 

Cashier's  Report  of  Chartered  Cars 

All  chartered  car  orders   covering   service  actually  per- 


PASSENGER— CASHIER'S    SPECIAL   DUTIES 


57 


formed  during  the  cashier's  reporting  periods — ending  on  the 
7th,  14th,  2 1st,  and  the  last  day  of  each  month — must  be 
included  in  the  cashier's  report  for  that  period  on  Form  28 
and  sent  in  to  die  comptroller's  office,  whether  collection  has 
been  made  or  not. 

When  cars  are  run  for  an  agreed  price,  as  explained  above, 
the  fares  collected  by  the  conductor  on  such  cars  should  be 
reported  on  a  separate  day  card  marked  "Chartered  Car." 
The  number  of  fares  so  collected  and  the  amount  of  cash,  etc., 
should  not  be  entered  on  the  regular  Form  16,  nor  be  consid- 
ered as  part  of  the  regular  business  in  any  way,  but  should  be 
handled  as  follows: 

The  chartered  car  order  should  show  on  it  the  full  amount 
of  the  price  agreed  upon,  and  if  any  fares  are  to  be  collected 
notation  to  that  effect  should  be  made.  When  the  cashier 
receives  the  copy  of  this  order  he  will  enter  on  the  face  of  it 
the  amount  of  cash  the  conductor  collected  on  the  car,  as 
reported  on  the  special  day  card,  and  if  a  bill  is  to  be  issued 
for  the  balance  he  will  forward  the  order  in  the  usual  way  to 
the  comptroller's  office  where  the  bill  will  be  made  out  accord- 
ingly. 

The  cashier  will  enter  the  amount  of  cash  in  his  cash  book 
and  deposit  it  in  the  regular  way.  He  will  handle  it  just  as 
he  would  any  other  cash  he  may  collect. 

He  will  enter  the  chartered  car  order  on  Form  28  at  the 
full  agreed  price  before  deducting  the  amount  for  the  cash 
fares  collected. 

The  effect  of  this  will  be  that  on  Form  28  the  cashier  will 
charge  himself  with  the  full  price  for  the  chartered  car  service. 
He  will  obtain  credit  through  his  bank  deposit  for  the  amount 
of  cash  collected  and  turned  in  to  him  by  the  conductor  and 
by  the  bill  issued  from  the  comptroller's  office  for  the  balance. 

If  the  chartered  car  order  specifies  that  payment  is  to  be 
made  to  the  conductor  or  at  the  office  and  the  cashier  does  not 


58 


"OUTSIDE"   ACCOUNTING   WORK 


receive  the  money  for  the  service  from  either  source  up  to  the 
end  of  the  reporting  period  in  which  that  service  was  per- 
formed, the  cashier  should  mark  across  the  face  of  the  order 
"Money  not  received ;  send  bill"  and  send  it  in  with  his  regular 
report  on  Form  28. 

The  Originating  Division 

The  division  where  the  service  originates  and  where  the 
car  is  furnished  will  be  responsible  for  the  collection  of  the 
money  involved. 

When  the  cashier  receives  a  copy  of  the  order  from  his 
manager  for  a  car  to  run  over  other  divisions  he  will  enter  it 
on  Form  28  in  the  regular  way.  Within  a  proper  time,  which 
should  not  be  later  than  two  days  after  the  service  is  per- 
formed, he  should  receive  from  the  cashiers  of  the  other  divi- 
sions concerned  a  report  of  mileage  made  by  that  car  on  every 
division. 

When  these  reports  come  in  from  the  other  divisional 
offices,  the  cashier  will  write  across  the  face  of  the  original 
order  from  his  own  manager  the  distribution  of  the  amount 
charged  between  the  participating  divisions,  as  follows:  The 
originating  division  will  be  credited  first  with  $5  for  furnish- 
ing the  car,  and  the  remainder  will  be  divided  between  all  the 
participating  divisions  on  the  basis  of  car  mileage.  The  cash- 
ier will  indicate  on  the  back  of  the  chartered  car  order  the 
mileage  made  on  each  division  as  reported  by  the  other  cash- 
iers and  also  the  proportion  for  each  division  arrived  at  as 
above. 

Distribution  of  Charge 

For  instance,  division  A  runs  a  car  to  division  B ;  it  makes 
twenty  miles  on  the  A  division  and  ten  miles  on  the  B  division. 
The  A  division  cashier  will,  on  the  back  of  the  order,  show  as 
follows : 


PASSENGER— CASHIER'S   SPECIAL  DUTIES 


59 


A  division 

20 

B  division 

10 

Total  mileage 

30 

Total  amount  to  collect 

$15.00 

Amount  to  be  credited  to  A  division 

for  use  of 

car 

5.00 

Balance 

$10.00 

divided  as  follows: 

Two-thirds  to  A  division  equals  $6.66  +  $5°°        $11.66 
One-third      "  B       "  3.34  3.34 


$15.00 


The  division  cashier  will  take  up,  of  course,  the  total  amount 
of  this  order  on  Form  28  in  the  usual  way.  The  distribution 
among  the  various  divisions  will  be  made  in  the  comptroller's 
office  from  the  information  furnished  on  the  back  of  the  order. 

The  Connecting  Divisions 

When  the  cashier  of  a  connecting  division  receives  a  copy 
of  an  order  from  his  manager  showing  that  it  is  based  upon  an 
order  from  another  division,  he  should  find  attached  to  it  a 
copy  of  the  originating  order.  When  the  service  is  performed 
he  will  at  the  earliest  possible  moment  figure  out  the  mileage 
made  on  the  division  by  that  car,  and  send  back  to  the  origi- 
nating division  the  copy  of  the  order  received  therefrom  with 
the  mileage,  and  the  name  of  his  division  clearly  shown.  The 
order  issued  by  his  own  manager  will,  of  course,  show  nothing 
to  collect,  and  he  will  show  that  order  number  in  the  regular 
way  on  Form  28,  but  with  no  amount  to  collect. 

He  will  include  in  the  mileage  of  his  division  the  mileage 
made  by  that  car  while  in  his  division.  The  credit  to  his  earn- 
ings will  be  taken  care  of  in  the  comptroller's  office. 


60  "OUTSIDE"   ACCOUNTING   WORK 

Transporting  Packages  on  Passenger  Cars 

The  transportation  of  small  packages,  somewhat  on  the 
status  of  baggage,  is  often  given  to  the  passenger  service. 
This  practice  often  causes  trouble  and  in  the  writer's  opinion 
it  is  not  generally  desirable.  There  are  some  localities,  how- 
ever, where  packages  can  be  so  carried  with  benefit  to  all  con- 
cerned by  the  use  of  a  system  of  express  labels.     (Form  22.) 

These  labels  may  be  sold  by  the  division  cashier's  office 
and  perhaps,  if  it  seems  advisable,  by  the  conductors. 

If  the  labels  are  to  be  sold  by  conductors,  the  cashier 
should  open  an  account  with  each  conductor  in  a  small  ledger, 
charging  the  conductor  with  the  serial  numbers  and  value  of 
the  labels  delivered  to  him  at  five  cents  each.  The  conductor 
should  give  a  receipt  for  the  number  of  labels  furnished  him. 

Each  conductor  should  report  daily  on  his  day  card  the 
number  of  express  labels  on  packages  during  the  run,  and  on 
Form  23  the  number  of  labels  which  he  has  sold. 

This  report  should  show  the  date,  the  ending  number  of 
the  express  labels,  the  commencing  number,  the  number  sold, 
and  the  amount  of  cash  received  from  the  sales.  As  the  con- 
ductor uses  up  a  book  of  labels  he  should  turn  the  cover  in  to 
the  cashier. 

There  must  be  a  separate  label  for  every  package.  The 
top  coupon  is  to  be  retained  by  the  consignor,  the  middle  one 
by  the  conductor.  The  consignor  must  sign  properly  in  the 
space  provided,  and  the  conductor  must  fill  out  on  the  reverse 
side  of  the  coupon  the  name  of  the  consignee,  the  date,  the 
trip,  and  his  own  name.  This  coupon  is  to  be  punched  by  the 
conductor,  turned  in  promptly  to  the  cashier  and  filed  accord- 
ing to  date  in  the  division  office.  The  lowest  coupon,  which 
is  gummed,  is  to  be  attached  to  the  package  by  the  pur- 
chaser— never  by  the  conductor — in  order  that  the  purchaser 
may  have  an  opportunity  to  read  the  conditions  under  which 
the  contract  is  made. 


PASSENGER— CASHIER'S   SPECIAL   DUTIES  6l 


THE  WESSEX  COMPANY 

PACKAGE  IDENTIFICATION  LABEL 

Five  Cents 

(For  use  subject  to  the  regulations  and  conditions  hereon) 


Regulations  as  to  Weight,  Distance,  Etc. — Packages  weighing 
less  than  10  lbs.  require  1  label  (5  cents)  for  each  5  cent  passenger 
fare  zone  through  which  such  package  is  carried;  for  each  addi- 
tional fare  zone  an  extra  label  is  required.  Packages  weighing  10 
lbs.  and  not  over  25  lbs.  require  2  labels  (5  cents  each)  for  each  5 
cent  passenger  fare  zone  through  which  such  package  is  carried; 
for  each  additional  fare  zone  two  extra  labels  are  required. 

No  bulky  package  or  over  25  pounds  in  weight  accepted. 


Conditions: — In  consideration  of  the  acceptance  by  the  Wessex 
Company  for  transportation  on  its  passenger  cars  of  a  package 
bearing  an  identification  label  of  the  same  serial  number  as  hereon 
appearing,  said  package  being  unaccompanied  by  the  owner,  it  is 
agreed  that  said  Company  shall  be  responsible  for  loss,  damage 
or  delay  to  such  package  only  in  the  event  of  negligence,  and  the 
burden  of  proving  actual  negligence  shall  be  upon  the  claimant; 
and  further  it  is  agreed  that,  in  consideration  of  the  low  rate 
charged  for  transportation,  under  no  circumstances  shall  the 
Wessex  Company  be  liable  in  the  event  of  loss,  damage  or  delay 
for  a  sum  in  excess  of  one  dollar  ($1.00),  at  which  sum  said 
package  is  hereby  valued. 

This  stub  to  be  retained  »»        t* 

by  shipper  JNO.   H,  7000 


THE  WESSEX  COMPANY 

PACKAGE  IDENTIFICATION  LABEL 

Five  Cents 


No.  E  7000 


(ETThis  contract  must  be  signed  by  person  shipping  package  and 
delivered  to  Conductor.  Conductor  must  promptly  send  these  con- 
tracts to  Cashiers. 


THE  WESSEX  COMPANY 


PACKAGE  IDENTIFICATION  LABEL 

is  labi 
ached 
package. 


This  label  to  be 

attached  to  -\-in     t?  „««„ 

package.  No.    L  7OOO 


Form  22.     (a)    Package  Labels   (face).     Size,  3  X  6^2. 


62 


"OUTSIDE"   ACCOUNTING   WORK 


CONDUCTOR'S  RECORD 

This  MUST  be  filled  out  by  Conductor  on  receipt  of  package 

Name  of  Consignee 

Date 

Trip 

Conductor. 


Form  22.     (b)  Conductor's  Record  (reverse  of  second  package 

label). 


THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 

Route : 

Ending  No. 

Total 

Commencing 
No. 

No.  Sold 

Amount  of  Cash 

Form  23.     Package  Labels  Sold.     Size,  5  X  5^4. 


PASSENGER— CASHIER'S   SPECIAL   DUTIES  63 

Report  of  Package  Labels 

The  cashier  should  check  carefully  the  conductor's  report 
on  Form  23,  to  see  that  the  numbers  of  the  labels  follow  in 
consecutive  order  with  the  previous  days'  reports,  that  the  cash 
is  correct,  etc.  He  should  enter  the  amount  of  cash  in  his 
regular  cash  book  as  follows: 

Express  Dept.   .    .    .   Express  Labels     @  5c,  each,  $. . . . 

He  should  credit  the  conductor  in  the  special  ledger  referred 
to  with  the  serial  numbers  of  labels  sold  and  the  amount  of 
cash  turned  in,  so  that  this  ledger  will  always  show  the  num- 
bers and  value  of  labels  in  the  hands  of  the  conductors. 

The  cashier  should  deposit  the  cash  in  the  bank  and  report 
it  on  his  daily  advice  to  the  comptroller  (Form  7,  page  30)  as 
express  earnings. 

On  Form  28,  the  period  report  of  ticket  sales  and  miscel- 
laneous business,  the  cashier  should  report,  under  the  head  of 
miscellaneous  earnings,  the  number  of  express  labels  sold. 
He  should  consider  as  labels  on  hand  all  unsold  labels  in  the 
office  and  all  labels  remaining  unsold  in  the  hands  of 
conductors. 

Transporting  Packages — Foreign  Divisions 

When  a  parcel  is  to  be  carried  to  a  point  on  a  foreign  divi- 
sion, the  conductor  should  see  that  the  proper  number  of  labels 
are  attached  to  the  parcel,  one  for  each  5c  fare  zone.  He 
should  then  see  that  the  lowest  numbered  label  is  properly 
signed  in  the  space  provided  for  the  signature  of  the  con- 
signor, and  he  should,  on  the  reverse  side  of  this  coupon  fill 
out  as  per  previous  instructions  his  name,  date,  trip,  and  con- 
signee's name.  This  label  is  then  considered  as  the  contract 
between  the  consignor  and  the  company;  and  the  succeeding 
labels,  which  are  considered  merely  as  evidence  of  the  pay- 


64 


"OUTSIDE"   ACCOUNTING  WORK 


ment  of  the  through  rate,  are  attached  to  the  contract  label 
by  the  conductor. 

At  the  terminus  of  his  division,  where  a  foreign  crew 
takes  charge,  he  should  deliver  the  package  to  the  other  con- 
ductor and  request  him  to  sign  his  name  on  the  highest  num- 
bered label  attached  to  the  parcel  on  the  reverse  side  of  the 
middle  coupon.  Thus  he  will  obtain  a  receipt  showing  to 
whom  the  parcel  was  delivered. 

The  division  upon  which  a  parcel  originates  retains  all 
the  labels  required  to  carry  a  parcel  to  its  destination,  regard- 
less of  the  number  of  divisions  through  which  it  may  pass  in 
its  transportation. 

Cashier's  Record  of  Packages 

The  cashier  keeps  a  daily  record  showing  the  total  num- 
ber of  coupons  collected  by  the  conductors  on  the  division. 
This  includes  the  stubs  for  packages  carried  on  his  own  divi- 
sion ;  also  the  stubs  for  packages  which  originated  on  his  divi- 
sion and  went  to  another  division,  or  which  originated  on 
another  division  and  went  to  a  point  on  his  own  division. 
This  record  could  be  kept  on  a  plain  sheet  of  paper  showing 
the  date  of  the  month,  day  of  the  week,  and  the  total  number 
of  stubs  collected  by  his  conductors.  At  the  end  of  the  month 
the  cashier  should  add  up  this  column  and  send  either  that 
record  or  an  exact  copy  of  it  to  the  comptroller's  office,  so  that 
it  will  be  received  not  later  than  the  5th  of  each  month. 

The  report  should  be  headed  clearly  with  the  name  of  the 
division  and  with  the  words  "Number  of  Express  Labels  Col- 
lected During  the  Month  of   "     It  should  show 

the  number  collected  each  day,  and  should  be  signed  by  the 
local  cashier. 

Transporting  Dogs 

Regular  fare  will  be  charged  for  the  transportation  of 
dogs.     Tickets  or  "dog-permits"  may  be  bought  in  advance 


PASSENGER— CASHIER'S    SPECIAL   DUTIES 


65 


and  will  be  reported  by  the  cashier  with  other  tickets  sold  on 
Forms  28  and  15.  In  the  cases  in  which  the  fare  is  paid  in 
cash  on  the  cars,  it  is  rung  up  with  other  fares  on  the  clock 
register  and  noted  specifically  on  the  day  card  in  the  space 
provided. 

Employees'  Deposits  for  Working  Tools 

Where  the  company  furnishes  employees  with  working 
tools,  such  as,  in  the  case  of  a  conductor,  punch,  badge,  rule 
book,  etc.,  all  of  which  should  be  retained  in  the  company's 
possession  after  the  employee  leaves  its  service,  it  has  been 
found  desirable  to  obtain  $5  each  from  conductors,  and  $3 
each  from  motormen  to  cover  these  articles. 

The  division  superintendent  upon  employing  a  conductor 
sends  him  to  the  cashier  to  make  a  deposit  of  $5  to  be  returned 
to  him  whenever  he  leaves  the  company's  service  on  surrender 
of  the  deposit  receipt.  For  this  Form  24  is  used,  in  books  of 
a  hundred  provided  with  a  stub. 

The  cashier  banks  the  money  received  in  this  way  with 
his  other  deposits,  designating  it  as  "receipts  from  conductors' 
and  motormen's  deposits."  He  will  report  the  amount  of 
these  receipts  on  the  regular  miscellaneous  earnings  report, 
(Form  28)  in  detail,  as  provided  on  the  form. 

When  Deposit  Receipt  Is  Lost 

If  any  employee  leaving  the  service  of  the  company 
reports  that  he  has  lost  his  deposit  receipt,  he  should  be 
required  to  fill  out  Form  25. 

The  portion  certifying  to  the  return  of  the  company's 
property  should  be  signed  by  the  division  manager.  The 
receipt  part  should  be  signed  by  the  conductor  or  motorman 
in  the  presence  of  a  witness.  The  cashier  can  then  return  to 
the  employee  the  amount  of  his  deposit,  holding  this  form  as 
a  voucher  for  the  disbursement  from  his  working  fund  and 


66 


"OUTSIDE"  ACCOUNTING  WORK 


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PASSENGER— CASHIER'S    SPECIAL   DUTIES 


67 


The  Wessex  Company 

191 

Local  Cashie 

THIS   IS 
has  returned 

Conductor 
....  Motorman 

TO   CERTIFY 
all  property  of 

THAT 

the  Company  issued  to 

him, 

and  upon  the 

adjustment  of  his  accounts 

with  the  Company  you 

may 

return  to  him 

the  amount 

}f  his  deposit. 

MANAGER. 

1    hereby 

.  Dollars  from 

The   Wessex 

Company,    bei 

ng   the    amount  deposited    by 

me   with    the 

Company  as 

stipulated. 

CONDUCTOR 
MOTORMAN 

Form  24.     (b)   Employee's  Deposit  Slip   (reverse). 


treating  it  as  an  original  deposit  receipt.  It  should  be  noted 
carefully  on  the  stub  of  the  original  deposit  receipt  that  the 
employee  asserted  the  loss  of  the  original  receipt,  and  that 
the  full  amount  of  his  deposit  was  repaid  on  such  and  such  a 
date. 

In  issuing  employees'  deposit  receipts,  if  an  error  should 
be  made  in  filling  out  the  form,  the  cashier  should  prepare 
another  in  its  place  and  retain  the  cancelled  form.  He  should 
attach  this  cancelled  form  to  his  next  report  to  the  comptrol- 
ler's office,  writing  across  the  stub  of  the  book  the  word  "can- 
celled," and  showing  the  date  the  cancelled  receipt  was  sent 
to  the  comptroller's  office. 


68  "OUTSIDE"   ACCOUNTING  WORK 


,    191.... 

Mr 

Cashier. 

This   is   to   certify   that Badge 

No has  returned  all  the  property  of  the  Company 

loaned    to    him   and   you   may   return   to   him    the   amount    of   his 
deposit. 


.MANAGER. 


I  acknowledge  having  received  from  The  Wessex  Company 
Dollars  ($ ),  being  the  amount  de- 
posited by  me  with  the  Company,  as  required. 


Employees   receipt   No issued   to  me  on 

has  been  mislaid  by  me,  and  I  agree  that  if  this  receipt  is  ever 
found  I  will  return  it  to  the  Company,  and  I  will  save  the  Com- 
pany harmless  from  any  amount  that  may  be  required  to  be  paid 
by  reason  of  the  loss  of  this  receipt  No 


.  Witness 


Form  25.    Employee's  Application  for  Duplicate  Deposit  Receipt. 
Size,  %y2  X  11. 

Employees'  Lunch  Vouchers 

When  men  are  held  for  orders  on  the  cars  so  as  to  prevent 
their  going  to  their  regular  boarding  places  for  meals  the  com- 
pany usually  furnishes  them  with  a  twenty-five  cent  lunch 
voucher,  as  per  Form  26. 

The  operating  department  is  provided  with  copies  of  Form 
26  to  be  distributed  to  the  various  starters  at  the  barns.  The 
starters  date  and  sign  these  forms  as  needed,  filling  in  the 
employee's  number.  Whenever  a  crew  is  ordered  to  work  past 
the  time  of  going  to  their  regular  boarding  places  for  meals 
the  starters  issue  a  voucher  to  each  man.  The  conductors  and 
motormen  sign  these  lunch  vouchers  and  obtain  cash  for  them 
in  two  ways.  They  may  hand  them  with  their  time  slips  to 
the  timekeeper  to  be  turned  over  to  the  cashier,  who  on  pay 
day  pays  the  men  the  amount  called  for  by  the  lunch  vouchers 
they  have  turned  in  during  the  week.     Or  the  men  may  go  to 


PASSENGER— CASHIER'S    SPECIAL   DUTIES 


69 


the  cashier's  office  at  any  time  and  receive  cash  in  exchange  for 
whatever  number  of  lunch  vouchers  are  due.  This  plan, 
besides  enabling  the  men  to  get  their  money  at  any  time  dur- 
ing the  week,  saves  time  on  pay  day. 


25c 


THE  WESSEX  COMPANY 

Division 

LUNCH  VOUCHER 

No.  246002 

Upon   presentation,  three  days  after  date,  of  this 
check,    duly   received,   at   the   Cashier's   office,   a   pay- 
ment of  TWENTY-FIVE   CENTS  will   be  made  to 
Conductor 
Motorman 

Issued    by 

Starter  or   Foreman 

RECEIVED    PAYMENT 

Date 191     

CONDUCTOR 
MOTORMAN 


NO. 


NO. 


Form  26.     Lunch  Voucher  and  Stub.     Size,  8j^   X  3J4. 


Record  of  Lunch  Vouchers 

The  lunch  vouchers  are  made  up  in  book  form  with  a  stub. 
The  stub  is  to  be  filled  out  by  the  starters  at  the  time  they  fill 
out  the  voucher,  and  at  the  end  of  each  day  the  starters  turn 
over  to  the  division  manager  all  books  from  which  they  have 
used  any  lunch  vouchers  during  the  day.  From  the  stub  upon 
Form  27  which  is  provided  for  his  office  and  which  shows  the 
badge  numbers  of  all  conductors  and  motormen  on  the  divi- 
sion, the  manager  takes  off  the  total  number  of  lunches  fur- 
nished the  men  during  the  day.  If  the  total  shown  is  proper 
the  manager  approves  the  form  in  the  space  provided  and 
turns  it  in  to  the  cashier.  This  approved  slip  from  the  mana- 
ger's office  is  the  cashier's  warrant  for  paying  lunch  voucher 
checks,  provided  that  they  are  presented  as  required,  namely, 
three  days  after  date.  These  lunch  vouchers  should  be 
punched  with  a  conductor's  punch  as  an  adequate  protection 
against  cashing  twice. 


7o 


"OUTSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 

This  report  to  be  prepared  and  turned  over  to  local  Cashier  promptly  when  "Lunch 
Vouchers"  have  been  issued  to  Conductors  or  Motormen 


.Division 


Pate  of  lssue_ 


CONDUCTOR  OP    NO  Of     CONDUCTOR  OR   NO  Of      CONDUCTOR  OR      NOOF      CONDUCTOR  OR     NQOf       CONDUCTOR  OR     NO  Of 
MOTORMAN  NO    CHECKS   MOTORMAN  NO  CHECKS   MOTDRMAN  NO    CHECKS    MOTORMAN  NO    CHECKS     MOTORMAN  NQ    CHECKS 


Conductors  and  Motormen  whose  numbers  are  listed  above,  have  been  Held  for  orders  on  the  cars,  ana 
are  entitled  to  the  number  of  Lunch  \feucher  Checks  marked  opposite  their  respective  names. 


Form  27.    Lunch  Voucher  Report.    Size,  8^  X  14. 


CHAPTER    V 

PASSENGER  SERVICE— REPORTS   AND 
RECAPITULATIONS 

Passenger  Business  Cash  Book 

In  connection  with  his  various  duties  the  division  cashier 
should  maintain  two  separate  and  distinct  cash  books.  The 
first  and  larger  records  the  daily  receipts  from  the  passenger 
service  and  sources  incidental  to  that  service.  On  the  debit 
side  of  this  book  he  should  enter  the  amounts  received  from 
the  passenger  business  during  the  day,  noting  what  they  were 
for  and  entering  them  in  three  columns:  "Passenger 
Receipts,"  "Ticket  Sales,"  and  "Miscellaneous."  "Miscel- 
laneous" includes  money  for  chartered  cars,  express  labels, 
conductors'  "shorts,"  etc.  All  money  received  from  these 
minor  sources  should  be  entered  in  the  cash  book  and  depos- 
ited daily  in  the  bank,  if  possible  at  the  time  when  the  money 
received  from  conductors  for  fares  is  deposited.  On  the 
credit  side  of  the  cash  book  the  cashier  should  enter  the 
amount  deposited  in  the  bank,  giving  the  name  of  the  bank 
and  also  the  money  paid  to  conductors  for  "overs."  The 
amount  of  the  deposit  must  of  course  agree  with  the  bank 
advice  sent  to  the  company  treasurer.  This  cash  book  should 
be  balanced  each  day ;  the  balance  carried  forward  to  the  next 
day  as  cash  in  hand. 

Working  Fund  Cash  Book 

In  addition  the  cashier  should  maintain  a  working  fund 

cash  book. 

Each  cashier  will  receive  from  the  company  treasurer  a 
small  working  fund  to  be  used: 

71 


*72  "OUTSIDE"   ACCOUNTING  WORK 

1.  For  the  payment  of  wages  of  men  who  have  been  dis- 

charged and  who  should  receive  their  money  before 
the  regular  pay  day. 

2.  For  the  payment  of  wages  of  employees  who   for 

some  reason  were  not  paid  up  to  the  date  when  the 
cashier  was  directed  to  return  to  the  bank  all  unex- 
pended pay-roll  money. 

3.  For  repayment  to  conductors  and  motormen,  when 

they  leave  the  service  of  the  company,  of  the 
amounts  of  their  deposits. 

4.  For  payment  of  express  and  cartage  bills  when  credit 

cannot  be  obtained  and  payment  has  to  be  made 
immediately. 

5.  For  payment  of  items  approved  by  the  division  mana- 

ger in  cases  of  emergency  when  the  disbursement 
cannot  be  handled  by  regular  bill  and  voucher. 

The  cashier  should  keep  account  of  this  working  fund  in 
a  small  special  cash  book.  For  the  first  two  items  mentioned 
above  he  is  reimbursed  by  the  weekly  pay-roll  check.  (See 
page  190.)  The  fourth  and  fifth  items  refer  to  exceptional 
cases.  Once  or  twice  a  year  perhaps  some  emergency  may 
require  disbursements  through  the  division  working  fund  for 
such  a  reason,  but  it  should  not  be  a  thing  that  happens  every 
month.  It  is  particularly  objectionable  to  have  the  working 
fund  voucher  cover  payments  for  material.  Necessary  mate- 
rial should  be  arranged  for  in  the  regular  way  through  the 
purchasing  agent's  office.  When  disbursements  must  be  made 
from  this  fund  for  such  special  reason,  the  cashier  should  be 
careful  in  every  instance  to  obtain  the  written  approval  of  the 
division  manager  and  should  report  fully  to  the  comptroller 
regarding  the  emergency  which  necessitates  its  payment 
through  the  working  fund. 

On  the  credit  side  of  this  cash  book  the  cashier  should 


PASSENGER— RECAPITULATIONS  73 

enter  the  disbursements  daily,  giving  dates,  names,  and 
amounts.  It  is  more  convenient  if  he  arranges,  in  showing  the 
disbursements  on  the  credit  side,  to  include  in  the  first  column 
on  the  page  the  amounts  which  are  to  be  included  on  the  regu- 
lar working  fund  reimbursement  voucher,  and  in  the  second 
column  the  items  which  are  reimbursed  through  the  pay-roll 
or  otherwise. 

Emergency  Cases 

In  emergency  cases  where  it  is  necessary  to  take  money 
out  of  the  daily  passenger  receipts  to  increase  the  fund,  the 
amount  so  withdrawn  should  be  shown  on  the  debit  side  of 
the  working  fund  cash  book  and  the  disbursements  therefrom 
in  the  regular  way  on  the  credit  side.  Then  when  the  working 
fund  reaches  the  point  where  it  is  possible  to  reimburse  the 
receipts  for  the  amounts  withdrawn,  the  amount  should  be 
duly  shown  on  the  credit  side  of  the  working  fund  cash  book 
under  the  date  when  it  was  transferred  back  to  the  receipts. 

Following  this  procedure,  the  working  fund  book  at  the 
close  of  business  every  day  will  show  the  amount  of  cash  that 
should  be  on  hand  in  the  division  office  for  everything  not 
covered  by  the  general  cash  book,  that  is  to  say,  for  everything 
except  the  passenger  receipts  and  the  items  included  on  Form 
28.  Like  the  regular  cash  book,  the  working  fund  cash  book 
must  be  balanced  daily. 

Working  Fund  Statement 

At  the  end  of  the  month  the  cashier  will  balance  the  book, 
carry  forward  the  balance  to  a  new  page,  and  immediately 
prepare  a  statement  of  disbursements  on  foolscap  paper  with 
columns  ruled  for  dollars  and  cents.  This  statement  should 
be  headed  as  follows:  "Disbursements  from  Working  Fund 
of  (Name  of  the  cashier,  title,  location)  for  the  Month  of 
"    Then  should  follow  the  date  of  each  disburse- 


74  "OUTSIDE"   ACCOUNTING   WORK 

ment,  the  name  of  the  person  to  whom  the  money  was  paid, 
brief  particulars,  the  amount  and  the  account  to  be  charged. 
The  approval  of  the  division  manager  should  be  obtained.  To 
the  statement  should  be  attached  the  receipts  covering  these 
disbursements  in  the  same  way  as  they  appear  on  the  state- 
ment. The  statement  should  be  sent  to  the  comptroller  for 
voucher  as  soon  after  the  first  of  the  month  as  possible  and  in 
no  case  later  than  the  fifth  of  the  following  month.  This 
statement  should  be  prepared  in  copying  ink  so  that  an  impres- 
sion may  be  taken  of  it. 

At  the  end  of  each  month  a  statement  must  be  prepared 
for  the  disbursements,  no  matter  how  small  they  may  have 
been.  A  payment  to  reimburse  the  working  fund  may  be 
made  twice  a  month  if  the  cashier  runs  short  of  funds.  It 
should  be  stated,  by  the  way,  that  in  the  case  of  amounts 
advanced  for  settlement  of  damage  claims,  a  voucher  should 
be  prepared  immediately.  The  voucher  is  in  favor  of  the  per- 
son to  whom  the  money  has  been  paid,  with  a  notation  at  the 
top  of  the  voucher  "Make  check  payable  to"  (here  should  be 
inserted  the  cashier's  name  and  title). 

The  Period  Report  of  Business 

Besides  the  two  reports  sent  to  the  comptroller's  office 
daily,  as  stated  on  pages  35  and  36,  the  division  cashier  pre- 
pares a  report  of  ticket  sales  and  miscellaneous  business  on 
Form  28  four  times  a  month,  a  monthly  balance  sheet,  Form 
29,  and  several  other  monthly  reports,  all  based  chiefly  on  the 
routine  passenger  business.  Some  of  these,  which  are  of  a 
statistical  nature,  will  be  discussed  in  Chapter  XXIII. 

The  period  report  (Form  28)  is  illustrated  herewith. 
Each  division  cashier  will  make  a  report  to  the  comptroller 
on  this  form  at  the  close  of  business  on  the  7th,  14th,  21st, 
and  last  day  of  each  month.     The  report  will  show  the  "com- 


PASSENGER— RECAPITULATIONS 


75 


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PASSENGER— RECAPITULATIONS 


77 


mencing  number"  of  every  kind  of  ticket  on  sale  at  that  office 
whether  any  sales  are  made  or  not. 

If  the  cashier  runs  out  of  one  series  of  numbers  in  the 
middle  of  the  week  and  begins  to  sell  the  same  kind  of  ticket 
from  another  series,  he  should  show  both  series.  This  is  done 
by  entering  the  sales  of  the  first  series  in  the  proper  column 
and  on  the  proper  line  for  that  class  of  ticket;  then  entering 
the  sales  of  the  same  ticket  from  the  other  series  on  one  of 
the  blank  lines  under  "dog  permits,"  writing  in  the  name  of 
the  ticket,  the  commencing  number,  the  ending  number,  the 
number  sold,  the  rate,  and  the  amount. 

Under  no  circumstances  should  any  of  the  printed  names 
be  crossed  out  and  the  line  used  for  inserting  the  name  of 
another  class  of  ticket,  but  all  broken  series  should  be  shown 
on  the  blank  lines. 

The  purpose  of  this  is  to  prevent  errors  in  the  comptrol- 
ler's office  in  classifying  the  ticket  sales.  In  the  last  column  of 
this  form  there  are  letters  A,  B,  C,etc,  indicating  to  what  class 
each  kind  of  ticket  belongs,  and  much  confusion  may  be  caused 
if  the  sales  of  class  B  tickets,  for  example,  should  be  reported 
on  the  line  for  class  E  tickets.  But  if  reported  on  the  blank 
lines  they  will  be  properly  checked  in  the  comptroller's  office. 

On  the  reverse  side  of  this  form,  the  details  are  to  be 
shown.  In  this  connection  it  should  be  noted  that  chartered 
car  orders  and  conductors'  and  motormen's  deposit  receipts, 
which  are  to  be  reported  in  detail,  should  be  reported  always 
in  consecutive  order.  Anything  that  might  prevent  reporting 
them  in  this  manner  should  be  noted  in  the  space  for  remarks. 

Division  Cashier's  Balance  Sheet 

Form  29  is  intended  to  give  a  complete  view  of  the  trans- 
actions of  the  division  cashier  and  the  status  of  his  account. 
At  the  top  he  should  fill  in  the  month,  the  name  of  the  office, 
and  the  name  of  the  division.     In  the  column  "Dr"  on  the  line 


78 


"OUTSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 
BALANCE  SHEET  OF  LOCAL  CASHIER  FOR  MONTH  OF                             191 

DR. 

CR 

To  Balance  Due  from  Cashier  lasr  Month 

By  remittances  made  during  month 

To  arrft  of  Passanger  Receipts-torm  16    (A) 

Bv  Bills  Collectible  requested 

To  amt  of  Tickets  &  Misc  Sales-Form  28  (A) 

■- : 

By  Balance  due  Company 

Total 

Total 

DETAIL  OF  ABOVE  BALANCE 

Passenqer  Receipts                     (8) 

(B) 

(B) 

Chartered  Cars                             (C) 

Ticket  Sales                               (B) 

Express  Labels                          (B) 
Cond  and  Mot.  Deposits            (CL 

— 

' : 

1  3hort  List                                    (B! 

|  Over  List                                        (B) 

\         — J — 1 

; — = 

Total 

INSTRUCTIONS. 
(A)  Show  details  on  reverse  side 
(8)  Show  dates.                 (C)  Show  numbers. 

(D)  This  Balance  Sheet  must  be  sent  to  the  Comptroller 

on  or  before  the  6*  of  the  following  month 

(E)  Cashier  should  retain  pen  copy  If  the  original  is  cor- 

rected in  Comptrollers  office  and  agreed  to  by  Cash- 
ier, the  same  changes  should  be  made  on  copy. 

I  hereby  certify  that  the  above  is  a  true  and 
correct  statement  of  my  account  with  THE.  WE5SEX 
COMPANY  for  the  time  specified. 

I  also  certify  that  1  hold  a  working  fund  amount- 
ing to  *                           for  use  in  this  office,  not 
included  in  above  statement 

fa"hinr 

Ralanro.  ^hooit                                                                      Offir*                                                               191 

DETAILS  OF  AMOUNTS  WHICH  ARE  ON  REVERSE  SIDE 

REPORT   OF  BUSINESS 

REMITTANCES  »°  CREDITS 

Daily 
Form  1G 

Weekly 
Form  28 

Remittances 
to  Tneas. 

Bills 
Requested 

Remarks 

i 

z 

_2 

— ===^ — 

'  3U 
31 

Remarks  on  Memoranda  ■• 

-1  Reverse  side  of  above  Fonrr 

1 

Form  29.     Division  Cashier's  Balance  Sheet.     Size,  8T/2   X   12. 


PASSENGER— RECAPITULATIONS 


79 


"Balance  Due  from  Cashier  last  Month,"  he  should  enter  the 
balance  reported  by  him  at  that  time,  subject  to  such  adjust- 
ments and  corrections  as  he  has  been  advised  of  by  the 
comptroller. 

On  the  next  line,  "Amount  of  Passenger  Receipts,"  he 
should  enter  the  total  of  his  Form  16  for  the  month.  On  the 
line,  "Amount  of  Tickets  and  Miscellaneous  Sales,"  he  should 
enter  the  total  amount  shown  by  his  Form  28  for  the  month. 

Under  the  column  "Cr"  the  cashier  should  enter  on  the 
line  "remittances  made  during  month"  the  amount  of  money 
so  deposited  in  the  bank  or  remitted  direct  to  the  company 
treasurer.  This  must-  agree  with  the  statements  on  Form  8, 
bank's  report  to  treasurer,  and  Form  7,  cashier's  report  to 
comptroller. 

On  the  line,  "Bills  Collectible  requested,"  the  cashier 
should  enter  the  total  amount  of  bills  which  he  has  requested 
the  comptroller's  office  to  issue  during  the  month. 

If  there  have  been  any  special  credits  which  the  cashier 
has  been  authorized  to  take  up,  they  are  to  be  entered  on  one  of 
the  blank  lines,  specifying  what  they  are  and  referring  to  the 
letter  from  the  comptroller  for  authority  for  the  credit. 

On  the  line  "Balance  due  Company"  the  cashier  should 
enter  the  balance  due  the  company  at  the  end  of  the  month, 
which  will  cause  the  total  of  the  credit  column  to  agree  with 
the  total  of  the  debit  column. 

Under  the  heading  "Details  of  Above  Balance"  should  be 
given  full  particulars  of  what  this  balance  consists  of.  In 
cases  where  the  cashier  uses  two  lines  for  items  of  the  same 
nature,  he  should  enter  the  amounts  in  the  first  column  and 
carry  out  the  total  of  each  class  of  item  into  the  second 
column.  If  there  is  only  one  item  of  each  class,  he  will  enter 
it  in  the  second  column.  The  grand  total  will  be  carried  out 
into  the  third  column. 

At  the  bottom  the  cashier  should  enter  the  amount  of  his 


g0  "OUTSIDE"  ACCOUNTING  WORK 

working  fund  in  the  space  provided  and  sign  the  balance 
sheet. 

On  the  reverse  side  of  the  form  should  be  entered  the 
office  and  the  date.  In  the  column  "Daily  Form  16"  the 
cashier  should  enter  daily  the  amount  of  his  receipts  as 
shown  by  Form  16,  subject  to  such  corrections  and  adjust- 
ments as  he  is  advised  of  from  time  to  time  by  the  comptroller. 

In  the  column  "Weekly  Form  28"  the  cashier  should  enter 
the  amount  reported  on  that  form  as  sent  in  to  the  comp- 
troller's office  weekly,  subject  to  such  corrections  as  he  has 
been  advised  of  from  time  to  time.  The  total  should  agree 
with  the  entry  on  the  front  page. 

Under  the  heading  "Remittances  to  Treasurer"  he  should 
enter  daily  the  amount  of  his  deposit  in  the  bank  or  his  remit- 
tance to  the  treasurer.  If  there  has  been  more  than  one 
deposit  a  day,  so  that  he  has  more  than  one  Form  7  for  the  day, 
he  should  enter  each  amount  separately,  writing  in  between 
the  lines  when  necessary.  The  total  of  this  column  should 
agree  with  the  item  on  the  front  page  of  the  balance  sheet. 

In  the  column  "Remarks"  such  comments  as  are  needed  to 
clear  up  doubtful  points  may  be  made. 

The  cashier  should  retain  a  copy  of  his  balance  sheet, 
sending  the  original  to  the  comptroller's  office.  After  check- 
ing the  cashier's  report,  the  comptroller  makes  such  correc- 
tions as  may  be  necessary,  advising  the  cashier  of  the  changes, 
and  the  cashier  may  make  the  same  changes  on  his  copy. 

If  the  cashier,  as  he  sends  in  his  daily  statements,  enters 
daily  upon  a  working  copy  the  sales,  reports,  remittances  and 
credits  of  his  office,  he  will  have  his  balance  sheet  practically 
ready  to  hand  in  at  the  last  of  the  month. 

Work  in  the  Comptroller's  Office 

The  work  done  in  the  comptroller's  office  in  connection 
with  the  passenger  business  involves  less  minute  detail  than 


PASSENGER— RECAPITULATIONS 


81 


that  done  in  the  division  offices,  but  it  is  extremely  important 
and  requires  an  expert  office  force. 

The  data  and  the  provisional  reports  sent  in  by  the  divi- 
sion offices  must  first  be  checked  authoritatively.  Then  all 
this  material  must  be  summarized  and  digested  into  unified 
form  for  the  general  records. 

Three  daily  reports,  it  will  be  remembered,  come  in  from 
the  division  offices  and  one  comes  from  the  office  of  the  gen- 
eral treasurer. 


THE  WESSEX  COMPANY 

REPORT  OF  TICKETS  COLLECTED               1 

division        officf                                               month  of     / 

CLASSIFICATION  OF  TICKETS                                   \ 

o 

Date 

1 

2 

3 

4 

5 

G 

p=^ 

29 

30 

31 

Totals 

/ 

Cash 

Value  5 

__ . 

1 

Total 


Form  30.     Monthly  Report  of  Tickets.     Size,  13  X  13. 


Counting  the  Tickets  and  Passes 

The  tickets  and  passes  collected  daily  have  been  counted 
in  the  various  offices  and  checked  with  the  conductors'  day 
cards  and  the  register  reports,  sorted  and  counted  again  by 


g2  "OUTSIDE"  ACCOUNTING  WORK 

classes,  and  summarized  for  the  comptroller's  office  daily  on 
Form  15.  In  the  comptroller's  office  they  are  now  counted 
again  and  checked  against  Form  16.  The  number  of  tickets 
must  agree  with  the  entries  on  these  two  forms.  In  this  con- 
nection the  ticket  counting  machines  referred  to  in  Chapter 
XXII  are  of  use. 

When  the  entries  of  these  forms  have  been  found  correct 
they  are  posted  in  a  loose-leaf  book,  "Report  of  Tickets  Col- 
lected," Form  30. 

At  the  close  of  each  month  this  book  is- totalled  and  bal- 
anced to  find  the  value  of  all  tickets  collected  on  the  various 
divisions.  From  this  information  a  journal  entry  is  pre- 
pared, charging  Advance  Ticket  Sales  account  and  credit- 
ing Earnings  Railway  Department,  Account  I,  Passenger 
Revenue. 

The  following  points  should  be  observed: 

1.  Tickets  and  passes   should   be   counted   face  up,   as 

stated  on  page  37. 

2.  Any  large  differences  between  the  division  count  and 

that  of  the  comptroller's  office  should  be  taken  up 
at  once  with  the  division  cashier.  All  clerical  work 
on  the  form  should  be  checked. 

3.  All  foreign  company  tickets  which  may  have  been 

turned  in  should  also  be  entered  on  Form  30  as  a 
basis  for  bills  to  be  rendered  against  such  foreign 
companies. 

Rgister  and  Fare-Box  Reports 

The  various  register  and  fare-box  reports  must  be 
checked  and  correlated.  The  copies  of  the  barn  inspectors' 
register  readings  which  have  been  sent  in  from  every  division 
on  Forms  12,  13,  and  14,  must  be  once  more  examined  in  the 
comptroller's  office  and  the  starting  and  ending  numbers  care- 


PASSENGER— RECAPITULATIONS  83 

fully  checked  so  that  every  fare  recorded  is  accounted  for. 
They  are  then  checked  against  the  reports  from  the  division 
cashier,  namely:  Form  16  and  the  cashiers'  reconciliation 
reports,  and  with  the  register  repair  reports  which  have  been 
sent  out  from  the  barns,  as  explained  on  page  44.  Should 
there  be  any  discrepancies  an  explanation  must  be  obtained 
from  the  division  office  and  the  necessary  corrections  then 
made. 

The  routine  of  checking  these  register  reports  is  as  fol- 
lows: 

1.  By  verifying  the  starting  readings  with  the  previous 

report  for  each  register. 

2.  By  verifying  the  subtractions  and  totals. 

3.  By  ascertaining  that  all  fares  are  accounted  for  on 

the  registers  as  shown  on  the  reconciliation  for  reg- 
isters of  which  the  starting  and  ending  readings 
are  on  different  divisions. 

4.  By  ascertaining  that  fares  deducted  as  chargeable  to 

other  divisions  are  accounted  for.  Those  unac- 
counted for  should  be  entered  under  the  following 
heading,  "Memorandum  of  Fares  to  Be  Accounted 
For." 

Memorandum  of  Fares  to  Be  Accounted  For 


Date 


Division 


Register   No. 


From     To 


Fares 


Date 


Reported 


By  entering  on  the  above  form  fares  deducted  in  the 

reconciliation  as  applicable  to  subsequent  days,  on 

account  of  day  cards  turned  in  late. 
By  ascertaining  that  a  repairs  report,  Form  18,  has 

been  received  for  deductions  from  registers  which 

have  been  repaired. 


84 


"OUTSIDE"   ACCOUNTING   WORK 


7.  By  ascertaining  that  the  fare-box  adjustments  equal 

total  of  adjustments  as  added  to  register  report. 

8.  By  comparing  the  net  total  of  the  register  reports 

with  Form  16. 
The  fare-box  reports  should  be  verified  in  the  same  way, 
noting  points  (1),  (2),  and  (8)  above. 

Checking  Daily  Passenger  Earnings 

The  daily  report  of  passenger  earnings,  Form  16,  must 
now  be  carefully  checked: 

1.  By  verifying  the  footing  of  the  cash  column  of  the 

grand  total  as  follows:  Prove  the  revenue  passen- 
ger column  by  adding  the  passes,  which  should 
equal  the  total  registered  column.  The  total  of 
the  revenue  column  less  the  tickets,  multiplied  by 
five  cents,  should  equal  the  cash  column. 

2.  By  comparing  the  registered  cash  of  each  line  with 

the  fare-box  cash  and  ascertaining  that  each  short- 
age is  properly  charged  on  the  form.  If  any  short- 
age is  found  not  so  charged,  it  should  be  entered 
under  the  heading,  "Memorandum  of  Fares  to  Be 
Accounted  For,"  as  noted  above,  and  the  division 
cashier  notified  to  make  the  charge. 

3.  By  verifying  the  footings  of  the  fare-box  column. 

4.  By  entering  the  totals  on  Form  32. 

Checking  Daily  Reports  of  Cash 

Reports  regarding  the  money  deposited  by  the  division 
cashiers  reach  the  comptroller's  office  daily  from  three 
sources:  from  the  cashiers  on  Form  7,  from  the  local  bank  on 
Form  8,  and  from  the  general  treasurer  on  Form  31.  The 
general  treasurer  reports  the  amount  of  money  received  daily 
from  each  cashier  or  agent. 


PASSENGER— RECAPITULATIONS 


85 


These  reports  must  all  be  checked  daily  in  the  comptrol- 
ler's office  and  any  errors  or  any  discrepancies  must  be  investi- 
gated at  once.  If  the  cashier's  report  indicates  that  any 
money  has  been  withheld  for  emergency  purposes,  the  clerk 
must  make  sure  that  a  letter  of  authority  was  received  and 
must  enter  a  memorandum  of  the  fact  at  the  foot  of  the  page 


THE  WESSEX  COMPANY 

LIST  OF  LOCAL  CASHIERS'  REMITTANCES 
RECEIVED  BY  TREASURER 

191 


No. 


THE   WESSEX   CO. 

New  York 


Greensville 
Ancaster  . . 
Hayesland 


AMOUNT 


Total, 
New  York  &  Ancaster  Ry.  Co 

The  Danville  Street  R.  R.  Co. 
Burton  Street  Railway  Co. 

Bellefield 

North  Park 

Total, 

Treasurer 

Form  31.     Treasurer's  Report  of  Cashier's   Remittance. 
4Y2  x  "H- 


Size 


on  the  remittance  book  (see  page  89).  When  this  money  is 
subsequently  deposited,  the  date  of  deposit  should  be  entered 
against  this  memorandum. 

When  finally  verified,  the  amount  of  cash  deposited  each 
day  should  be  entered  in  a  cash  summary  book. 


g6  "OUTSIDE"   ACCOUNTING   WORK 

Checking  Period  Report  of  Ticket  Sales  and  Miscellaneous 
Business 

The  period  report  of  ticket  sales  and  miscellaneous  busi- 
ness, Form  28,  which  comes  in  from  the  division  offices  four 
times  a  month,  must  be  checked  against  the  previous  report  to 
make  sure  that  the  tickets,  etc.,  are  being  sold  in  numerical 
order,  and  after  it  has  been  verified  the  totals  are  posted  in 
the  summary  of  earnings  book,  Form  32.  The  method  of 
checking  is  as  follows: 

1.  The  starting  numbers  of  tickets,  orders,  etc.,  should 

be  verified  by  the  previous  report  and  the  card 
record  of  tickets,  etc.,  for  charges  for  any  new 
series  of  tickets. 

2.  The  date  of  sales  and  the  starting  and  ending  numbers 

of  each  series  should  be  entered  on  a  card  record. 

3.  Subtractions,    multiplications,    and   totals    should   be 

verified. 

4.  The  report  should  be  verified  with  the  record  of  char- 

tered car  orders.  In  the  case  of  chartered  cars  the 
numbers  must  be  examined  to  see  that  they  run 
consecutively,  and  checked  against  the  report  to  see 
that  they  are  all  entered  on  the  reports  for  the 
amount  specified.  The  report  must  be  checked 
clerically  for  additions,  etc. 

5.  The  cashier's  stubs  of  conductors'  and  motormen's 

deposits,  returned  with  Form  16,  should  be  verified. 

Checking  Cashiers'  Balance  Sheets 

The  balance  sheets  of  the  division  cashiers,  which  are  sent 
in  monthly,  must  be  examined  and  verified.  The  clerk  should 
note  especially: 

Whether  the  balance  is  in  accordance  with  the  balance 
as  shown  by  the  books  in  which  the  charge  and 


PASSENGER— RECAPITULATIONS  87 

credits  against  the  cashier  are  kept,  known  as  the 
local  cashier's  ledger  (see  page  89). 

The  date  when  amounts  due  are  deposited. 

Whether  more  than  seven  days'  short  lists  are  due. 

Additional  suggestions  regarding  this  checking  are  as 
follows : 

The  cashier's  balance  should,  generally  speaking,  repre- 
sent the  business  done  on  the  last  day  of  the  month,  together 
with  any  uncollected  short  lists.  It  should  be  examined  care- 
fully to  see  if  the  amount  of  the  business  done  on  the  last  day 
of  the  month,  as  finally  ascertained,  works  out  to  the  same 
amount  as  that  shown  by  the  balance  sheet.  Due  allowance 
should  be  made  for  the  fact  that  on  account  of  Sundays  and 
holidays  a  particular  balance  may  represent  two  days' 
business. 

The  balance  as  sent  in  from  the  division  cashier  should 
be  compared  with  a  balance  drawn  off  from  the  cashiers' 
ledger  just  mentioned  upon  a  sheet  of  ruled  journal  paper. 
All  additions  and  adjustments  should  be  investigated  and  if 
necessary  the  matter  should  be  taken  up  by  correspondence  or 
through  the  traveling  auditor  to  adjust  any  difference.  The 
statement  as  finally  worked  out  should  be  totalled  as  to  all 
its  columns,  signed  by  the  clerk  in  charge,  and  turned  over  to 
be  checked  by  the  bookkeeper. 

Detail  Books  Prepared  in  Comptroller's  Office 

From  the  above  data  and  reports,  four  detail  books  sum- 
marizing the  passenger  business  are  made  up  in  the  comptrol- 
ler's office. 

1.    Report  of  Tickets 

This  is  a  loose-leaf  book  (Form  30)  posted  daily  and  total- 
led and  balanced  at  the  end  of  the  month  to  find  the  value  of  all 


88 


"OUTSIDE"   ACCOUNTING  WORK 


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PASSENGER— RECAPITULATIONS 


89 


tickets  collected  in  the  various  divisions.  From  this  informa- 
tion a  journal  entry  is  prepared  charging  Advance  Ticket 
Sales  account  and  crediting  Earnings  Railway  Department, 
Account  1,  Passenger  Revenue. 

2.  Summary  of  Passenger  Business 

The  summary  of  reports  from  local  cashiers  of  passenger 
business  (Form  32)  is  a  loose-leaf  book,  one  page  for  each 
division. 

The  verified  totals  of  Form  16  are  entered  in  this  daily, 
and  the  verified  totals  of  Form  28  four  times  a  month.  At 
the  end  of  the  month  a  journal  entry  is  prepared  charging  the 
local  cashier  and  crediting  the  various  earning  accounts, 
namely:  Passenger  Revenue,  Baggage  Revenue,  Chartered 
Car  Revenue,  Mail  Revenue,  or  any  other  revenue  in  accord- 
ance with  the  Interstate  Commerce  Commission's  Uniform 
System  of  Accounts. 

In  addition  to  the  above  summary,  the  cashiers'  reports 
on  Form  16  should  be  bound  and  filed  in  the  comptroller's 
office. 

3.  Division  Cashiers'  Ledger 

This  is  an  ordinary  columnar  stock  book  and  an  account 
is  opened  for  each  cashier.  Each  account  is  started  with  the 
balance,  as  per  the  detail  of  the  general  books  as  of  a  certain 
date.  At  the  end  of  the  month  the  totals  for  each  division,  as 
shown  on  Form  32,  are  entered  to  the  debit  side  of  each  cash- 
ier's account.  The  total  amount  so  debited  to  the  cashier's 
account  should  agree  with  the  total  as  shown  on  the  regular 
monthly  journal  entry. 

4.  Cash  Summary  Book 

This  is  a  book  with  a  page  for  each  month,  and  a  separate 
column  for  the  cashier  of  each  division.     Here  is  entered  each 


g0  "OUTSIDE"   ACCOUNTING   WORK 

day  the  amount  of  cash  which  is  banked  or  remitted  for  by  the 
cashier  according  to  Form  7,  after  it  has  been  checked  by 
the  general  treasurer's  report.  A  point  to  note  is  that  all 
cash  remitted  or  banked  by  the  local  cashiers  during  each 
month  according  to  the  dates  on  Form  7  is  credited  to  their 
account  that  month,  notwithstanding  that  the  general  trea- 
surer may  not  take  the  same  into  his  account  until  the  follow- 
ing month.  The  cash  should  be  entered  to  the  credit  of  each 
cashier  in  this  cash  summary  book  to  agree  with  his  Form  7. 
At  the  end  of  the  month  the  columns  of  the  summary 
book  are  totalled,  and  the  journal  entry  made  up  crediting 
"Division  Cashiers,  Railway  Department,"  and  charging  "Cash 
in  Transit"  with  the  proper  amounts.  A  memorandum  should 
accompany  this  journal  entry  showing  the  amounts  which 
were  credited  to  the  cashiers  in  the  cash  summary  book — but 
not  taken  up  by  the  treasurer  until  the  following  month.  This 
memorandum  should  show  the  name  of  the  cashier,  the  date 
the  remittance  or  deposit  was  made  by  him,  the  amount,  and 
the  date  it  was  taken  into  the  account  by  the  treasurer. 

The  total  of  each  column  in  the  cash  summary  book  is 
then  posted  into  the  division  cashiers'  ledger  to  the  credit  of 
the  account.  The  total  amount  so  credited  to  all  the  cashiers' 
accounts  should  agree  with  the  amount  of  the  journal  entry 
referred  to  above. 

Any  special  entries  or  adjustments  that  are  necessary 
should  be  handled  through  the  clerk  in  charge  by  the  head 
bookkeeper  so  that  every  debit  or  credit  made  in  the  general 
books  to  the  Division  Cashiers'  account  will  be  handled 
through  the  division  cashiers'  ledger.  At  the  end  of  the 
month  this  ledger  should  be  balanced  and  started  afresh. 

Final  Record  of  Passenger  Business 

The  passenger  business  of  the  company,  so  far  as  the 
accounting  department  is  concerned,  results  in  a  number  of 


PASSENGER— RECAPITULATIONS  gi 

journal  entries,  bills,  and  reports.     The  main  entries  to  be 
made  are: 

i.    A  charge  against  Cash  in  Transit  and  a  corresponding 
credit  to  Division  Cashiers,  prepared  from  Form  31. 

2.  A  charge  against  Division  Cashiers  and  a  correspond- 

ing credit  to  Sundries,  prepared  from  Form  32. 

3.  A  charge  against  Advance  Ticket  Sales  and  a  corre- 

sponding credit  to  Operating  Revenue,  prepared 
from  Form  30. 

To  accompany  each  of  these  an  analysis  sheet  is  prepared. 

There  are  also  a  few  special  journal  entries  called  for  by 
special  features  of  the  organization. 

The  journal  entries  should  reach  the  bookkeeping  depart- 
ment by  the  10th  of  the  month,  the  analysis  sheets  by  the  20th. 

There  are  various  bills  for  chartered  cars,  ticket  sales,  etc., 
as  reported  by  the  division  cashiers,  and  also  special  bills,  for 
example,  against  foreign  railway  companies  for  tickets  hon- 
ored for  passage  on  company  lines. 

Preparation  of  Statements 

One  other  duty  assigned  to  the  clerks  in  charge  of  the  pas- 
senger business  is  the  preparation  of  certain  statements  for  the 
convenience  of  the  company  management.    These  are: 

1.  Daily  cash  passenger  earnings,    showing  daily   and 

monthly  earnings  to  date  and  a  comparison  with 
previous  year.  Send  to  chief  clerk  as  soon  as 
possible. 

2.  Seven  days'  cash  passenger  earnings  ending  Fridays. 

Showing  seven  days  ending  Fridays  and  month  to 

date.     Include tickets.     Send  to  chief 

clerk  for  president  by  11:30  a.m.  Friday. 

3.  Passenger  earnings,  periods  ending  7th,    14th,  21st, 

and  31st  of  each  month.     Showing  passenger  earn- 


92  "OUTSIDE"   ACCOUNTING   WORK 

ings  of  month  to  date  of  these  periods.  Include  cash 
tickets  and  chartered  car  orders.  To  statistician's 
office  by  i  p.m. 
4.  Transfers  collected.  Monthly  statements  of  trans- 
fers issued  on  various  divisions.  To  head  bill  clerk 
each  month. 

Distribution  of  Work 

The  distribution  of  the  passenger  work  among  the  staff 
of  the  comptroller's  office  who  are  working  on  this  kind  of 
work  might  be  as  follows : 

Head  clerk.  Correspondence,  journal  entries,  analysis 
sheets,  card  record  of  tickets,  orders,  etc. ;  verifica- 
tion and  recording  of  fare-box  changes;  approval  of 
all  reports  and  statements  prepared. 

Clerk  A.  Recording  of  Form  16,  remittances,  cash- 
ier's balance,  advance  ticket  ledger,  date  of  deposit  of 
amounts  due  on  cashiers'  balance  sheets;  preparation 
of  bills  and  all  reports  and  statements;  filing  of  all 
records,  etc. 

Clerk  B.  Verification  of  portion  of  register  reports 
and  inter-division  fares  (all  divisions)  ;  preparation 
of  daily  statements  showing  reconciliation  of  all 
divisions. 

Clerk  C.  Verification  of  certain  register  reports;  prep- 
aration of  record  of  revenue  tickets  collected  on  vari- 
ous divisions. 

Clerk  D.  Counting  of  tickets,  all  divisions ;  preparation 
of  statements  of  tickets  for  all  reports;  verification  of 
reports  of  passes  issued  by  superintendent. 

The  above  is  given  merely  as  an  illustration  of  just  how 
each  kind  of  work  can  be  put  upon  a  regular  schedule  and 
then  followed  to  a  conclusion  each  day. 


CHAPTER    VI 

EXPRESS      AND      FREIGHT      SERVICE  —  LOCAL 
OFFICE  ROUTINE 

Organization  of  Express  and  Freight  Service 

With  street  railway  companies  the  express  and  freight 
business  is  comparatively  a  new  development,  which  has 
grown  up  usually  in  direct  response  to  local  needs  and  condi- 
tions. With  a  number  of  roads  it  has  already  come  to  be  a 
very  important  line  of  work,  and  it  seems  likely  to  have  a 
much  wider  development  in  the  future. 

The  organization  of  the  express  and  freight  service, 
according  to  the  system  here  described,  differs  markedly  in 
one  point  from  that  of  the  passenger  service.  The  passenger 
service  is  organized  by  divisions,  a  single  division  office  gath- 
ering up  the  reports,  etc.,  of  many  conductors  and  other 
employees  and  transmitting  them  with  digests  to  the  comptrol- 
ler at  the  main  office.  The  express  and  freight  service  is  organ- 
ized by  stations,  several  of  them  perhaps  in  a  division,  and  at 
each  station  there  is  an  official  who  communicates  directly 
with  the  company  treasurer  and  the  comptroller.  So  far  as 
the  accounting  work  for  the  express  and  freight  service  is  con- 
cerned, the  divisions  are  not  considered  at  all  except  that  the 
earnings  and  expenses  are  ultimately  grouped  and  classified 
by  divisions  in  the  comptroller's  office. 

In  the  passenger  service  there  is  a  special  representative 
of  the  accounting  department  for  every  division,  known  as 
the  division  cashier.  In  the  express  and  freight  service  the 
agent  at  each  station  attends  both  to  the  handling  of  ship- 

93 


94  "OUTSIDE"   ACCOUNTING   WORK 

ments  and  to  the  accounting  work.  At  large  stations,  of 
course,  the  agent  will  have  a  staff  of  several  assistants,  includ- 
ing usually  a  cashier  who  reports  more  or  less  directly  to  the 
comptroller. 

Classification  of  Express  and  Freight  Shipments 

Express  and  freight  shipments,  according  to  the  system  here 
described,  are  grouped  into  five  classes:  (i)  Freight,  (2) 
Express,  (3)  Class  C,  (4)  Class  B,  and  (5)  Milk. 

1.  Freight  refers  to  shipments  neither   collected   from 

the  shipper  nor  delivered  to  the  street  address  of 
the  consignee,  but  merely  carried  from  one  station 
to  another. 

2.  Express  refers  to  shipments  that  are  both  collected 

and  delivered. 

3.  Class   C  refers  to   shipments   that   are   collected   by 

motor  service  at  the  shipping  end  but  not  delivered. 

4.  Class  B  refers  to  those  that  are  delivered  "but  not 

collected. 

5.  Milk  shipments  are  in  a  class  by  themselves  and  are 

so  designated  by  the  Interstate  Commerce  Com- 
mission. 

Certain  differences  of  treatment  will  be  indicated  further  on, 
but  in  the  main  the  procedure  is  the  same  for  all  these  classes. 
The  more  modern  practice  with  a  great  many  companies  is  to 
have  only  two  classes,  express  and  milk,  as  almost  all  street 
railway  companies  move  freight  in  the  same  manner  as 
express. 

Outgoing  Merchandise — Bill  of  Lading 

When  freight  or  express  is  brought  into  the  station  a  bill 
of  lading  is  made  out  and  signed  by  the  company's  representa- 
tive and  given  to  the  shipper  as  his  receipt.   If  the  shipper  pre- 


EXPRESS    AND    FREIGHT— LOCAL    ROUTINE 


95 


fers  he  may  use  his  own  form,  the  standard  bill  of  lading, 
printed  with  his  name.  The  forms  provided  by  the  company 
are  these: 

Form  33 — Small  bill  of  lading 
34 — Large  bill  of  lading 
35 — Special  bill  of  lading  for  drop-off  points 
"      36 — Bill  of  lading  for  valuable  packages 

The  original  is  usually  given  to  the  shipper,  and  if  the 
shipper  uses  his  own  bill  of  lading  he  is  supposed  also  to 
retain  the  original,  but  this  is  not  always  practicable.  Some- 
times the  original  is  retained  by,  or  given  to,  the  company  and 
the  carbon  copy  is  kept  by  the  shipper.  These  bills  of  lading 
are  turned  over  to  a  price  clerk  who  marks  on  them  the 
charges,  after  which  they  are  turned  over  to  the  billing  clerk, 
who  makes  out  the  way-bills  in  duplicate.  The  original  way- 
bill goes  with  the  shipment  and  the  duplicate  is  retained  in 
the  office  for  checking  purposes  and  the  files.  In  no  case 
should  a  shipment  be  received  without  a  receipt  being  given 
for  it. 


E^Read  conditions  of  contract  on   other  side  of  this   receipt,  to 
which  shipper  agrees  by  accepting  this  receipt 

THE    WESSEX    COMPANY 
(EXPRESS   DEPARTMENT) 
Received  the  following  articles  in  apparent  good  order 

DATE 

ARTICLE 

CONSIGNEE 

DESTINATION 

SIGNATURE 

1 

1       | 

\       _i__^_^^L_^^^_L-^^~J 

96 


"OUTSIDE"   ACCOUNTING  WORK 


CONDITIONS 

Which  we  undertake  to  forward  to  the  nearest  point  of 
destination  reached  by  this  company,  subject  expressly  to  the 
following  conditions,  namely:  This  company  is  not  to  be  held 
liable  for  any  loss  or  damage,  except  as  forwarders  only,  nor  for 
any  loss  or  damage  by  fire,  by  the  dangers  of  navigation,  by  the 
act  of  God,  or  of  the  enemies  of  the  Government,  the  restraints 
of  Government,  mobs,  riots,  insurrections,  pirates  or  from  or  by 
reason  of  the  hazards  or  dangers  incident  to  a  state  of  war.  Nor 
shall  this  company  be  liable  for  any  default  or  negligence  of  any 
person,  corporation  or  association  to  whom  the  above  described 
property  shall  or  may  be  delivered  by  this  company,  for  the 
performance  of  any  act  or  duty  in  respect  thereto,  at  any  place 
or  point  of  the  established  routes  or  lines  run  by  this  company, 
and  any  such  person,  corporation  or  association  is  not  to  be 
regarded,  deemed  or  taken  to  be  the  agent  of  this  company  for 
any  such  purpose,  but  on  the  contrary,  such  person,  corporation 
or  association  shall  be  deemed  and  taken  to  be  the  agent  of  the 
person,  corporation  or  association  from  whom  this  company  re- 
ceived the  property  above  described,  it  being  understood  that  this 
company  relies  upon  the  various  railroad  and  steamboat  lines  of 
the  country  for  its  means  of  forwarding  property  delivered  to  it 
to  be  forwarded,  it  is  agreed  that  it  shall  not  be  liable  for  any 
damage  to  said  property  caused  by  the  detention  of  any  cars, 
train  of  cars,  or  of  any  steamboat  upon  which  said  property  shall 
be  placed  for  transportation;  nor  by  the  neglect  or  refusal  of  any 
Railroad  Company  or  Steamboat  to  receive  and  forward  the  said 
property. 

It  is  further  agreed  that  this  company  is  not  to  be  held  liable 
or  responsible  for  any  loss  of  or  damage  to  said  property  or  any 
part  thereof,  from  any  cause  whatever,  unless  in  every  case  the 
said  loss  or  damage  be  proved  to  have  occurred  from  the  fraud  or 
negligence  of  said  company  or  their  servants,  nor  in  any  case 
shall  this  company  be  held  liable  or  responsible,  nor  shall  any 
demand  be  made  upon  them  beyond  the  sum  of  FIFTY  DOLLARS, 
at  which  sum  said  property  is  hereby  valued  unless  the  just  and 
true  value  thereof  is  stated  herein,  and  an  increased  charge  paid 
for  the  transportation  thereof,  nor  any  property  or  thing  unless 
PROPERLY  PACKED  AND  SECURED  for  transportation,  nor 
upon  any  FRAGILE  FABRICS  unless  so  marked  upon  the  pack- 
age containing  the  same  nor  upon  any  fabrics  consisting  of  or 
contained  in  GLASS.  In  no  case  shall  this  company  be  liable  for 
any  loss  or  damage  unless  the  claim  therefor  shall  be  presented 
to  it  in  writing,  at  this  office  within  SIXTY  DAYS  after  this  date, 
in  a  statement  to  which  this  receipt  shall  be  annexed.  If  any 
sum  of  money  besides  the  charges  for  transportation  is  to  be 
collected  from  consignee  on  delivery  of  the  above  described  prop- 
erty and  the  same  is  not  paid  within  thirty  days  from  the  date 
hereof,  the  shipper  agrees  that  this  company  may  at  its  option 
return  said  property  to  him  at  the  expiration  of  that  time,  subject 
to  the  conditions  of  this  receipt,  and  that  he  will  pay  the  charges 
for  transportation  both  ways,  and  that  the  liability  of  this  com- 
pany for  such  property  while  in  its  possession  for  the  purposes  of 
making  such  collection,  shall  be  that  of  Warehousemen  only.  And 
it  is  further  agreed  that  this  company  shall  not  be  liable  for  any 
loss  of,  or  damage  to  BAGGAGE,  addressed  to  Railroad,  Steam- 
boat or  Steamship  lines,  after  the  same  has  been  left  at  THE 
USUAL  PLACE  OF  DELIVERY  to  such  lines.  THE  PARTY 
ACCEPTING  THIS  RECEIPT  HEREBY  AGREES  TO  THE  CON- 
DITIONS HEREIN  CONTAINED. 

FOR  THE  COMPANY 


Form  23-     (b)  Bill  of  Lading   (reverse) — Conditions. 


EXPRESS    AND    FREIGHT-LOCAL   ROUTINE 


97 


C?  Read  conditions  of  contract   on   other   side,   to    which 
shipper  agrees  by  accepting  this  receipt 

THE  WESSEX  COMPANY 

(EXPRESS  DEPARTMENT) 

Received  the  following  articles  in  apparent  good  order 

From 19 


ARTICLES 


CONSIGNEE 


DESTINATION 


For   the    Company. 


Form  34.     Bill  of  Lading — Large.     Size,  9   X    15.  (Conditions 
appearing  on  reverse  of  this  form  are  the  same  as  those  ap- 
pearing on  reverse  of   Form  33.) 


IC^Read    conditions    on    other   side    of   this    receipt,    by    which    this 

shipment   is   covered    and    to    which    the    shipper   agrees 

by  accepting  this  receipt. 

THE  WESSEX  COMPANY 
(EXPRESS  DEPARTMENT) 

Special    Bill    of    Lading    Covering    Shipment   of    Goods   to    Stations 

at   Which   This  Carrier    Maintains    No    Agent   or 

Facilities  for   Protecting    Delivery. 

Received  the  following  articles  in  apparent  good  order 
From 191 . . 

DATE 

ARTICLE 

CONSIGNEE 

DESTINATION 

SIGNATURE 

Form  35.     (a)   Special  Bill  of  Lading  (face).     Size,  %l/2  X  5^4. 


98 


"OUTSIDE"   ACCOUNTING  WORK 


Conditions  of  Special  Contract  Governing  the  Transporta- 
tion and  Delivery  of  This  Shipment 

The  Wessex  Company  undertakes  to  forward  this  shipment  to 
the  nearest  point  of  delivery  set  forth  on  the  face  of  this  receipt  or 
to  the  nearest  point  of  destination  reached  by  this  company,  sub- 
ject expressly  to  the  following  conditions,  namely:  This  company  is 
(First  two  paragraphs  of  conditions  are 
the   same   as   on   reverse   of   Form   33.) 


It  is  expressly  understood  by  the  Shipper  that  these  goods  are 
consigned  to  a  station  at  which  this  company  maintains  no  agent 
or  other  employees,  and  at  which  it  maintains  no  station  platform 
or  facilities  of  any  sort  for  the  reception  or  protection  of  goods 
consigned  thereto,  and,  in  consideration  of  the  company's  accept- 
ing this  shipment  for  transportation  to  such  point  the  shipper 
agrees  that  delivery  shall  be  deemed  to  have  been  accomplished 
by  the  company  when  the  goods  have  been  deposited  by  the 
company  alongside  the  rails  or  roadbed  of  the  company,  and  the 
shipper  will  not  hold  the  company  responsible  for  failure  to  main- 
tain an  agent  or  delivery  facilities  at  this  point  and  expressly 
relieves  the  company  from  all  liability  for  loss  of  or  damage  to 
the  shipment  unless  it  be  shown  that  such  loss  or  damage 
occurred  prior  to  or  at  the  time  said  goods  were  deposited  along- 
side the  rails  or  roadbed  of  said  company  at  the  point  named  as 
destination.  THE  PARTY  ACCEPTING  THIS  RECEIPT  HERE- 
BY AGREES  TO  THE  CONDITIONS  HEREIN  CONTAINED. 

FOR  THE  COMPANY. 


Form  35.     (b)   Special  Bill  of  Lading  (reverse) — Conditions. 


READ  THE  CONDITIONS  OF  THIS   RECEIPT 

NOT  NEGOTIABLE 

THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 


19 


Received  of 

said  to  contain 

Valued  at Dollars 

Marked  


Which  we  undertake  to  forward  to  the  nearest  point  of  destination 
reached  by  this  company,  subject  expressly  to  the  following  con- 
ditions, namely:  This 


THE  USUAL  PLACE  OF  DELIVERY  to  such  lines.     THE 
PARTY  ACCEPTING  THIS  RECEIPT  HEREBY  AGREES 
TO  THE  CONDITIONS  HEREIN  CONTAINED. 
FOR  THE  COMPANY. 


Form   36.     Bill   of   Lading   for    Valuables.     Size,   8^    X    514. 
(Conditions  same  as  those  appearing  on  reverse  of  Form  33.) 


EXPRESS    AND    FREIGHT— LOCAL   ROUTINE 


99 


Incoming  Merchandise — Delivering  Shipments 

The  agent  must  be  alert  or  the  freight  station  will  become 
congested  with  freight  on  hand.  The  freight  must  be  dis- 
posed of  as  soon  as  possible  and  it  is  sometimes  desirable  to 
notify  consignees  that  certain  freight  and  express  shipments 
have  arrived  at  the  station  for  them.  For  this  purpose  a 
printed  post  card,  Form  37,  is  used. 


THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 
191.... 

The  following  freight  has  been  received  at  this 
station  consigned  to  you  from 

and  while  on  premises  of  Company,  will  be  held  at 
your  sole  risk  of  loss  and  damage. 

If  not  removed,  this  Company  will,  at  the  ex- 
piration of  twenty-four  hours,  assess  a  storage 
charge. 

This  Company  reserves  the  right  whenever  it 
finds  it  necessary  in  the  transaction  of  its  business 
to  place  said  freight  in  public  storehouse  at  sole 
risk  and  expense  of  owners  and  subject  to  lien  for 
all  freight  and  other  charges,  after  one  day  from 
time  freight  is  unloaded. 

This  Company  does  not  undertake  to  give  notice 
of  arrival  of  freight.  Whenever  a  notice  is  sent 
it  is  solely  for  convenience. 

Bring  this  notice  with  bill  of  lading  when  call- 
ing for  consignment. 

Agent 

Form  2,7-    Freight  Notice  Post-card.    Size,  zVa  X  5ZA. 


IOO 


"OUTSIDE"   ACCOUNTING  WORK 


After  this  notice  has  been  served  the  company  of  course 
has  the  right,  as  is  stated  on  the  post-card,  to  charge  storage 
when  the  regular  time  that  a  shipment  may  remain  at  the 
freight  station  has  expired. 

When  shipments  are  taken  from  the  freight  houses  by 
consignees,  as  is  the  usual  case,  the  consignee  must  receipt  for 
them  on  Form  38.     (See  also  page  117.) 


M 

Received  of  the 

Unless 

WRN 

"Vwtinn 

CASHIES 
CON 

Mon+h 
Pro.  No. 

>'S  CHEC 
SIGNte 

K 

Pro                Car 
No                 Nr> 

Transported  from 

Ml 

wessex  comrany  in  apparent  good  order 

tfberviisc  noted,  the  following  goods; 
n                            rtatp. 

M 

Shipper 

No. 

Articles 

Weight 

Rate 

Charges 

i 

P«>l!v£>rerl 
DELIVERY  CHECK 

l<M 

By 

(5ign  Here) 

Advances 
Total 

Cartage 

For  Consignee 

Form  38.     Freight  Receipt.     Size,  4  X  8J/2. 

When  shipments  are  delivered  by  team  the  driver  must 
obtain  the  signatures  of  the  consignees  on  the  driver's  sheet 
(Form  39). 

When  it  is  necessary  to  give  a  receipt  for  money  Form  40 
is  used. 

In  no  case  should  goods  be  delivered  by  the  driver  with- 
out receiving  payment  unless  credit  has  been  duly  granted  by 
the  agent  as  provided  on  page  119.  If  the  consignee  cannot 
pay,  the  goods  must  be  brought  back  to  the  office. 


Refused  Shipments 

Whenever  consignees  refuse  shipments  the  agent  at  the 
receiving  station  should  request  the  agent  at  the  forwarding 


EXPRESS    AND    FREIGHT— LOCAL   ROUTINE 


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102 


'OUTSIDE"   ACCOUNTING  WORK 


.Office,  State  of 19 


M. 


To  THE  WESSEX  COMPANY,  Dr. 
(EXPRESS  DEPARTMENT) 

For  transportation  of 1  Our  Charges 

From State  of ^Advanced  Charges 

W-B  No Date Weight J  Amount  of  C.  O.  D 

Shipped  by Total  $ 

Received  Payment 

For  The  Wessex   Co. 
Express  Department. 


Form  40.    Receipt  for  Money.    Size,  8%  X  3TA- 


station  to  obtain  a  written  disposition  order  from  the  con- 
signor. This  order  should  be  filed  as  part  of  the  original  bill 
of  lading  given  to  the  consignor  when  he  made  the  shipment. 
As  soon  as  the  forwarding  agent  obtains  this  written  order, 
he  should  notify  the  receiving  agent,  who  will  handle  the 
shipment  in  accordance  with  the  shipper's  instructions.  If 
the  shipper  wishes  the  shipment  returned  to  the  forwarding 
point,  the  agent  making  the  return  should  bill  the  shipment 
back  with  the  original  charges,  plus  the  return  charges.  When 
making  such  billing  reference  should  be  made  to  the  original 
billing. 

Money  Deposited  Daily  in  Bank 

All  money  received  during  the  day  at  each  station  is  depos- 
ited daily  in  the  bank  and  notice  is  sent  to  the  comptroller's 
office  on  Form  7. 

In  towns  where  the  company  does  not  maintain  bank 
accounts  agents  should  not  deposit  company  money  to  the 
credit  of  their  personal  accounts  and  then  remit  personal 
checks  to  the  company  in  settlement  for  the  business  at  their 
stations.     Money  collected  by  them  for  the  company  must  be 


EXPRESS   AND   FREIGHT— LOCAL   ROUTINE 


103 


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io4  "OUTSIDE"   ACCOUNTING   WORK 

sent  on  to  the  company  treasurer.  They  may,  however,  accept 
checks  from  customers  when  there  is  no  question  as  to  the 
customer's  responsibility. 

Way-Billing  Freight  and  Express 

After  being  carefully  checked  with  the  shipments  the  bills 
of  lading  are  copied  upon  way-bills,  similar  to  that  here 
shown  (Form  41).  A  larger  size,  17  inches  by  9  inches,  is 
also  used.  The  left  half  of  the  sheet  gives  a  description  of  the 
articles  shipped,  the  name  of  consignor  and  consignee,  and 
specifies  the  charges  due.  The  right  half  of  the  sheet  is  for 
checking  by  the  company  employees  through  whose  hands  the 
shipment  passes. 

As  soon  as  prepared,  the  way-bills  are  carefully  footed, 
made  into  bundles  for  the  various  points,  and  sent  on  with  the 
shipments.  Among  other  shipments  to  be  way-billed  are  the 
reports  to  the  comptroller's  office,  which  should  be  sent  dead- 
head, plainly  marked  "D.  H.,"  and  showing  the  forwarding 
station. 

Express  labels  (Form  42)  should  be  pasted  on  all  express 
matter.  They  will  show  the  amount  of  prepaid  charges  if  the 
shipment  is  to  go  forward  paid,  or  else  the  amount  to  be 
collected. 


Form  42.    Express  Label.    Size,  3  X  2,y2. 

C.  O.  D.  Packages 

All  C.  O.  D.  packages,  and  all  valuable  packages  such  as 
jewelry  or  furs,  whose  value  is  greater  than  that  of  shipments 


EXPRESS   AND   FREIGHT— LOCAL   ROUTINE 


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• 


106  "OUTSIDE"   ACCOUNTING   WORK 

accepted  in  the  ordinary  course  of  business,  should  be  written 
up  on  a  way-bill  such  as  Form  43. 

A  G  O.  D.  label  is  provided  (Form  44).  One  of 
these  labels  filled  out  in  accordance  with  the  instructions 
printed  thereon  should  be  pasted  conspicuously  on  C.  O.  D. 
packages  when  they  are  received  for  shipment.  In  no  case 
should  a  C.  O.  D.  package  or  shipment  go  forward  without 
this  label.  Another  such  label  should  be  pasted  on  the  lower 
left-hand  corner  of  the  C.  O.  D.  way-bill. 


THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 

C  O.  D. 


Return  Charges  to  be  Paid  by. 


Employee  receiving'  must  enter  in  above  blank  space  the 
amount  of  C.  O.  D.  and  whether  shipper  or  consignee  is  to  pay 
return  charges  on  collection,  pasting  label  on  C.  O.  D.  shipment 
at  the  time  of  receipt.  Agents  at  destination  must  make  re- 
mittance of  C.  O.  D.  collection  to  shipper  or  agent  at  shipping 
point  within  twenty-four  hours  after  collection 

Name  and  address 
of    shipper 


Form  44.     C.  O.  D.  Label.     Size,  4X3. 

Messengers,  billing  clerks,  and  all  others  interested  should 
be  instructed  that  under  no  circumstances  should  a  shipment 
covered  by  one  of  these  way-bills  go  forward  without  being 
accompanied  by  the  bill.  Messengers  in  charge  of  cars  upon 
which  shipments  are  forwarded  should  see  that  the  way-bill 
accompanies  the  merchandise  shipped  and  that  the  billing  and 


EXPRESS   AND   FREIGHT— LOCAL   ROUTINE 


107 


shipment  tally  in  every  respect.  After  ascertaining  this  by 
actual  count  and  inspection,  the  messenger  should  endorse 
the  way-bill  with  his  signature.  At  transfer  points  the  mes- 
senger receiving  the  shipment  should  check  it  and  endorse  the 
way-bill  in  the  same  way. 

C.  O.  D.  Register 

A  C.  O.  D.  register  (Form  45)  is  used  to  register  all 
C.  O.  D.'s  from  one  station  to  another,  careful  record  being 
kept  of  all  shipments.  The  forwarding  agent  should  see  that 
the  C.  O.  D.  envelopes  are  returned  promptly  by  the  receiving 
agent  or  that  a  satisfactory  explanation  is  given  for  the  delay 
in  returning. 


THE  WESSEX  COMPANY 

EXPRESS   DEPARTMENT 
Mnnthof                                  COD.   REGISTER 

WAY-BILL 

ARTICLES 

CONSIGNOR 

CONSIGNEE 

Oest.  or 

fvvd  fbint 

CQDor 
Value 

DRIVER'S 
SIGNATURE 

REMARKS 

Date 

No 

6.1 1« 

Back 
WB.No 

... 



| 

— 

1 

Form  45.    C.  O.  D.  Register.    Size,  11  X  14. 

Collecting  for  C.  O.  D.  Shipments 

Under  no  circumstances  should  a  C.  O.  D.  shipment  be 
delivered  unless  the  amount  due  is  collected  at  the  time  of 
delivery.  Checks  should  not  be  accepted  in  payment  for  such 
shipments  unless  certified  by  a  bank.  When  a  shipment  is 
sent  C.  O.  D.  the  amount  should  be  collected  in  currency  and 


io8  "OUTSIDE"   ACCOUNTING  WORK 

so  remitted  to  the  consignor.  If  the  consignee  fails  to  pro- 
duce the  amount  in  cash  or  a  certified  check  at  that  time,  the 
goods  should  be  brought  back  to  the  station  and  the  forward- 
ing agent  promptly  notified,  so  that  he  may  take  up  the  ques- 
tion of  disposition  with  the  consignor. 

Where  the  shipper  of  C.  O.  D.'s  wishes  to  change  the  con- 
signee, or  have  the  C  O.  D.  reduced,  or  to  have  the  consignee 
relieved  of  charges,  or  where  the  entire  amount  to  be  paid 
is  received,  the  forwarding  agent  should  approve  the  in- 
structions and  then  way-bill  them  through.  The  receiving 
agent  will  return  the  original  bill,  envelope,  etc.,  free  of  charge 
to  the  forwarding  agent. 

A  statement  of  all  outstanding  C.  O.  D.'s  should  be  sent  to 
the  comptroller's  office  with  the  regular  report  (Form  28)  at 
end  of  each  period. 

"Over,  Short,  and  Damaged"  Reports 

In  case  a  shipment  does  not  tally  with  the  way-bill  or  is 
in  any  way  defective,  the  receiving  agent  should  issue  an 
"Over,  Short  and  Damaged  Report"  on  Form  46. 

The  following  instructions  printed  on  the  back  of  this  form 
must  be  observed  exactly. 

Rule  i.  These  reports  should  be  made  in  triplicate,  sending  the 
original  to  the  forwarding  station,  a  copy  to  the  Comptroller  and  retaining 
the  triplicate.  They  should  be  numbered  commencing  with  No.  1,  and  con- 
tinuing in  numerical  order  until  advised  by  the  Comptroller  to  commence 
new  numbers.  If  you  do  not  get  your  report  back  within  four  days  report 
the  fact  to  Comptroller's  office  together  with  copy  of  original  report,  attach- 
ing copy  of  billing. 

All  shorts,  overs,  etc.,  must  be  immediately  reported  in  the  above 
manner  to  the  forwarding  station,  sending  a  copy  of  the  report  as  stated 
to  the  Comptroller. 

Rule  2.  You  will  make  proper  notation  on  copy,  showing  what 
is  done  with  papers  when  they  leave  your  office.  They  will  be  called 
for  in  many  cases  to  be  attached  to  claims,  in  which  case  you  will  show 
our  claim  number  and  date  attached.     If  the  matter  has  been  adjusted 


EXPRESS   AND    FREIGHT— LOCAL   ROUTINE 


109 




THE  WESSEX  COMPANY 
Express  Department 

REPORT  OF  FREIGHT 
Over,  Short,  Damaged,  Refused  or  Unclaimed 

Commence  with  No.  One. 

Agent's  No. 

[trims    report    must    not    be    re- 
garded   as   an   excuse  for  neglect- 
ing to  use  all  other  known  means 
of   rectifying  errors. 

General 
Office  No. 

STATION 

191 

The  following  freight  is at  this  Station  from 

Way-Bill  No from Station, 191 

T3 
<L> 

S 

>> 

DO 

< 

Consignee  and 
Destination 

Articles 
Way-Billed 

All 

Marks 

All  Notations 
on  Way-Bills 

% 
U 
1) 

Hi 

< 

All  Marks 

Articles 
Received 

Articles  Over  or  Short — 
Nature  and  Extent  of  Damage 

REMARKS: 

1 

1 

Form  46.     Over,  Short,  and  Damaged  Report.     Size,  8  X   10^2. 

(Reverse   of    form   gives    space    for    Station,    Agent's    No.,    and 

Date,  also  the  instructions  which  are  shown  on  page  108.) 


you   will   mark  "O.  K."   on  copy  and   show   full   particulars   as   to  how 
and  when  adjusted,  filing  report  in  usual  manner. 

Rule  3.  This  report  must  be  made  at  once  and  sent  to  forwarding 
agent.  In  case  freight*  is  over  and  forwarding  agent  cannot  be  located, 
then  send  the  report  to  this  office,  noting  thereon  "cannot  locate  forward- 


II0  "OUTSIDE"   ACCOUNTING   WORK 

ing  agent."  Forwarding  agents  will  make  necessary  notations  as  to 
their  record  and  return  report  at  once  to  receiving  agent  who  will  file 
same  in  his  office  in  numerical  order,  provided  the  matter  has  been 
adjusted.  Otherwise  continue  investigation  until  matter  is  adjusted,  or 
until  it  becomes  necessary  to  send  all  papers  to  the  Comptroller  for  further 
investigation. 

Rule  4.  Articles  over  (less  than  carloads)  which  are  plainly  marked 
should  be  promptly  forwarded  to  destination  by  the  nearest  natural  route 
(unless  marks  on  package  show  a  different  route)  and  a  regular  way- 
bill made  for  same,  showing  no  weight  or  charges,  but  being  particular 
to  note  on  face  of  way-bill,  "Astray  Freight,"  and  refer  to  O.  S.  &  D.  No. 
Deliver  only  upon  proper  proof  of  ownership. 

Rule  5.  Consignees  should  be  notified  of  articles  over  which  plainly 
belong  at  the  station  at  wnich  they  are  unloaded  and  such  property  may 
be  delivered  if  consignee  shows  proper  proof  of  ownership,  but  care 
must  be  exercised  to  collect  sufficient  money  to  cover  the  probable  amount 
of  freight  and  charges.  Agent  will  then  take  immediate  steps  to  secure 
the  regular  revenue  way-bill. 

Rule  6.  Articles  reported  short,  which  are  received  after  a  claim  for 
their  value  has  been  presented,  must  not  be  delivered  to  consignee  until 
the  Comptroller  has  been  communicated  with. 

Rule  7.  Report  of  unclaimed  or  refused  freight  must  be  made  im- 
mediately after  agent  has  ascertained  cause  for  same,  and,  whenever 
practicable,  forwarding  agent  must  promptly  notify  the  shipper  and  request 
disposal  orders. 

Rule  8.  Agents  will  be  considered  personally  responsible  for  any  loss 
resulting  from  failure  to  comply  fully  with  these  instructions. 

When  issuing  an  O.  S.  &  D.  report  the  agent  should  specify 
also  the  class  of  merchandise  (see  page  94)  to  which  the 
way-bill  in  question  belongs. 

Investigating  O.  S.  &  D.  Reports 

When  an  agent  receives  from  another  station  an  O.  S.  &  D. 
report,  he  should  enter  the  particulars  in  a  record  book 
(Form  47). 

This  record  should  provide  for  the  following: 

1.  Date  O.  S.  &  D.  report  received 

2.  Date  and  number  of  O.  S.  &  D.  reports  and  from 

where  received 


EXPRESS   AND   FREIGHT— LOCAL   ROUTINE 


III 


Way-bill  number  and  date ;  car  number 


Consignee 


Destination 

Article 

Record  of  all  papers  sent  to  other  agent  with  date 

Remarks  and  final  disposition 


THE  WESSEX 

No. 

-  REPORT 
FROM 

WAY-BILL 
FROM 

WAY-BILL 
NO. 

DATE 

CAR 

CONSIGNEE 

1 

Left-hand  Paqe 

| 

1 

1 

L — 

-1    -      .       |          1     | 

=> * 

COMPANY 

DESTINATION 

ARTICLES 

No. 
Billed 

No. 
Recti. 

Report 
To 

Date 

REMARKS 

REPORT 
RETURNED 

I 

Right-hand  Page 

— | 

1 

J 

____|__.i 

■ 

Form  47.     Over,  Short,  and  Damaged  Record    (left-hand  and 
right-hand  pages).     Size,  10  X   16. 

For  example,  in  entering  an  over  or  short  report  in  his 
records,  the  agent  would  use  the  first  line  for  the  date  when 
the  report  was  received  and  this  would  be  the  heading  under 
which  all  reports  received  that  day  would  be  entered. 

In  column  "No."  should  be  entered  the  number  of  "short" 
notices  received.  Under  "Report  from"  the  name  of  the  sta- 
tion forwarding  the  report  and  the  date  of  the  report  should 
be  entered,  using  one  column  for  the  name  of  the  station  and 


H2  "OUTSIDE"   ACCOUNTING   WORK 

one  for  the  date.     In  the  next  three  columns  should  appear 
the  forwarding  station,  the  way-bill  number,  and  date. 

A  record  is  also  made  of  the  car  number,  the  consignee, 
the  destination,  and  the  article.  The  columns  "No.  Billed" 
and  "No.  Received"  show  any  difference  between  the  ship- 
ment as  received  and  the  way-billing.  Columns  "Report  to" 
and  "Date"  show  the  record  of  papers,  etc.,  if  sent  to  other 
agents  or  other  parties  for  investigation.  Column  "Report 
returned"  is  the  record  of  the  date  when  the  report  is  returned 
to  the  agent  issuing  it,  and  the  name  of  the  station  to  which 
the  report  is  returned. 

Way-bills  to  be  Abstracted 

All  way-bills  must  be  abstracted,  moreover,  in  regular 
form,  whether  correct,  "over,"  or  "short."  When  abstracting 
way-bills  for  which  they  have  issued  an  "over"  report  agents 
will  make  reference  on  their  abstract  to  the  number  of  this 
"over"  report.  With  way-bills  which  are  "short"  the  charges 
may  be  reported  on  the  abstract  as  uncollected. 

Agents  should  remember  that  the  comptroller  must  be  noti- 
fied promptly  of  the  disposition  of  all  "shorts."  If  a  claim  is 
presented  to  the  agent  it  should  be  turned  over  to  the  comp- 
troller immediately  with  all  available  information. 

Issuing  Agent's  Corrections 

When  an  agent  finds  it  necessary  for  any  reason  to  report 
changes  and  corrections  in  a  way-bill  he  should  issue  Form  48. 

This  form  is  made  in  triplicate,  the  original  being  sent  to 
the  comptroller  and  the  duplicate  to  the  agent  whose  way-bill 
is  corrected.  The  agent  receiving  the  duplicate  will,  if  it  is 
found  correct,  sign  and  forward  it  to  the  comptroller.  If 
erroneous,  he  will  forward  it  to  the  comptroller  with  his  rea- 
son for  non-acceptance.  The  tissue  copy  is  retained  by  the 
agent  making  the  correction. 


EXPRESS    AND    FREIGHT— LOCAL    ROUTINE 


113 


Agent's  No Comptroller's  No 

ORIGINAL 

THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 

Station 191... 

Comptroller  Head  Office, 

and 

Agent    at 

Dear  Sir: — I  have  made  the  following  corrections  on  Way-Bill 

No from to 

dated 191 


WAY-BILL   READS  PREVIOUS  TO  CORRECTION: 


No.  of 
Car 


Consig- 
nee and 
Destin- 
ation 


Wt. 


Rate 


Frt 
Chges. 


Adv.  Chges. 


Amt.to 
Collect 


Prep. 


Tot.  Footings  Way-Bill 


WAY-BILL    READS   AFTER    CORRECTION. 


No.  of 
Car 


Consig- 
nee and 
Destin- 
ation 


Wt, 


Rate 


Frt 

Chges. 


Adv.  Chges. 


Amt.to 
Collect 


Prep. 


Tot.  Footings  Way-Bill 


I   have  found  the  above  charges  correct, 
and  have  corrected  my  accounts  accordingly. 

Agent 

Agent 

This  Correction  Sheet  must  be  sent  IMMEDIATELY  to  the  Office 
of  Comptroller. 


(Duplicate) 

This  Duplicate  Correction  Sheet  must  be  sent  IMMEDIATE- 
LY to  the  Agent  as  per  direction  No.  2,  in  front  of  Book,  and 
original  of  the  same  Form  must  be  sent  IMMEDIATELY  to  the 
Office  of  the  Comptroller. 

The  Agent  receiving  this  sheet  will,  if  it  is  found  correct, 
sign  and  forward  same  to  Comptroller;  if  erroneous  he  will  for- 
ward to  Comptroller,   with   reason  for  non-acceptance. 


Form  48.    Agent's  Correction  of  Way-Bill  (in  triplicate).     Size, 

8j^2    X     10%.     (Triplicate    is    a    tissue    copy,    and    is    headed 

"Agent's  Copy."    At  bottom  of  triplicate  is  noted :     "This  copy 

to  be  retained  by  Agent  issuing  it.") 


ii4 


"OUTSIDE"   ACCOUNTING  WORK 


It  should  be  noted  here  that  it  is  the  duty  of  the  receiving 
office,  the  "destination  office,"  to  verify  the  charges  entered 
upon  way-bills.  If  a  way-bill  is  not  filled  out  according  to  the 
tariff,  whether  the  shipment  is  collect  or  prepaid,  the  destina- 
tion agent  will  correct  it  and  promptly  issue  an  agent's  correc- 
tion on  the  office  making  the  error. 

Tracers 

All  companies  that  handle  a  large  volume  of  freight  and 
express  have  had  the  experience  of  losing  shipments.  To  find 
such  shipments  the  following  tracer  (Form  49)  is  provided. 

These  tracers  should  be  attended  to  immediately  by  all 
agents. 


THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 

191 ... . 

TRACER  ANSWER  AT  ONCE        IMPORTANT 

On    

Shipped  to 


Is  reported  short  at  destination.  Please  make  a  careful 
search  of  your  station,  and  also  over  delivery  records,  and 
advise  on  this  sheet  if  you  can  close  this  shortage. 


Agent. 
TO  AGENTS: 


Form  49.    Tracer.    Size,  Sy2  X  11. 


CHAPTER     VII 

EXPRESS     AND     FREIGHT     SERVICE   —   LOCAL 
OFFICE   SUMMARIES   AND   SPECIAL   WORK 

Settling  Sheets 

At  each  station  the  way-bills,  both  those  forwarded  and 
those  received,  will  be  written  up  daily  on  settling  sheets.  For 
outward  way-bills  Form  50  is  used,  and  for  inward  way-bills 
Form  51. 

One  of  these  large  sheets  is  filled  in  with  the  station  name 
and  the  date;  then  after  the  copies  of  the  forwarded  way-bills 
are  in  shape,  all  those  of  one  day  grouped  together,  one  of 
the  clerks  starts  writing  up  or  filling  in  the  settling  sheet.  The 
station  to  which  the  shipment  goes  is  written  in ;  the  number 
of  the  way-bill  and  the  total  of  the  way-bill  are  put  down. 
Then  the  amount  of  money  paid  in  advance  is  entered.  If 
the  shipper  has  a  credit  account  and  is  to  prepay  charges,  his 
name  or  number  is  put  down.  All  other  way-bills  are 
recorded  in  like  manner.  At  the  close  of  the  day  the  sheet  is 
totalled,  a  summary  made,  and  all  totals  are  posted  to  the 
proper  ledger  accounts. 

All  outward  way-bills  should  be  written  up  on  settling 
sheets  from  the  carbon  copies  the  day  after  they  have  been 
issued. 

Inward  way-bills  should  be  written  up  in  the  same  manner 
the  day  they  are  received.  They  should  show  the  forwarding 
point,  the  way-bill  number,  the  "collect"  footing,  and  the  per- 
son or  persons  chargeable.  When  all  way-bills  have  been 
written  up  the  settling  sheet  should  be  footed  and  a  recapitu- 

115 


n6 


"OUTSIDE"   ACCOUNTING   WORK 


EXPRESS    AND    FREIGHT— SUMMARIES  nj 

lation  made  in  the  column  provided,  showing  the  distribution 
of  charges,  as  previously  explained. 

Posting  Settling  Sheets  to  Ledger 

The  amounts  which  appear  in  the  recapitulation  column  of 
the  settling  sheets  should  be  posted  on  the  debit  side  of  the 
station  ledger  against  the  proper  accounts,  showing  the  date 
and  specifying  outward  and  inward  business  by  the  letters  "O" 
and  "I"  respectively. 

AH  cash  transactions  in  the  local  office  should  be  entered 
in  the  station  cash  book  daily  and  posted  into  the  ledger  to 
the  proper  accounts. 

Issuing  Bills  and  Collecting 

The  agent  has  also  the  duty  of  issuing  bills  for  express 
shipments  to  credit  customers  and  of  collecting  them.  In  the 
case  of  bills  issued  to  consignors  for  outward  shipments  the 
bills  of  lading  should  be  checked  against  the  forwarded  way- 
bill and  the  amount  of  charge  put  on  the  bill  of  lading.  Then 
the  agent  will  issue  Form  52,  specifying  the  date  of  shipment, 
the  articles  sent  forward,  the  destination,  and  the  amount  of 
charges  as  way-billed. 

In  the  case  of  bills  issued  to  consignees  for  incoming 
shipments  Form  53  is  filled  out  from  the  incoming  way-bills. 
To  this  is  attached  a  copy  of  the  freight  receipt  (Form  38) 
showing  the  consignee,  the  forwarding  point,  the  way-bill 
number,  the  date,  the  articles  received,  and  the  amount  of 
charges. 

The  amount  of  outward  and  inward  shipments  as  shown 
on  Forms  52  and  53  should  agree  with  the  amounts  set  up  in 
the  ledger. 

All  bills  should  be  collected  weekly  by  the  local  office  unless 
the  customer  is  privileged  with  monthly  credit. 


n8 


"OUTSIDE"   ACCOUNTING   WORK 


Office,  State 

of Date 

191.... 

M 

TO   THE  WESSEX   COMPANY,   DR. 

Express  Department 

OUTWARD  SHIPMENTS 

DATE 

ARTICLES 

CONSIGNEE 

FROM 

AMOUNT 

^^^l^„^ 

TOTAL 

Form  52.    Bill  for  Outward  Shipment.    Size,  8l/2  X  8}^. 


Office,   St 

Date 

191.. 

M 

TO  THE  WESSEX  COMPANY,  DR. 

(EXPRESS  DEPARTMENT) 

INWARD  SHIPMENTS 

DATE 

ARTICLES 

CONSIGNOR 

FROM 

AMOUNT 

TOTAL, 

Form  53.     Bill  for  Inward  Shipment.     Size,  8l/2   X  &/>. 


EXPRESS   AND   FREIGHT— SUMMARIES  119 

Credit  to  Shippers 

Credit  should  be  extended  only  upon  the  authority  of  the 
comptroller's  office.  When  an  application  for  credit  is 
received  by  an  agent  the  request  should  be  forwarded  to  the 
comptroller's  office,  together  with  all  the  information  obtain- 
able offhand  concerning  the  financial  standing  of  the  appli- 
cant, the  location  of  his  home  office  if  not  in  the  town,  and  an 
estimate  of  the  amount  of  his  weekly  business  with  the  road. 
Upon  receipt  of  this  information  the  standing  of  the  appli- 
cant will  be  looked  into,  and  the  agent  will  then  be  advised 
whether  or  not  to  extend  credit  to  the  applicant.  All  exten- 
sion of  credit  not  authorized  by  the  comptroller's  office  is 
charged  to  the  agent's  account,  and  he  is  held  responsible  for 
the  money  involved. 

Credit  should  be  extended  only  for  one  week.  No  depar- 
ture from  this  rule  should  be  made,  unless  specifically  author- 
ized by  the  main  office.  Bills  should  be  rendered  on  the  7th, 
14th,  and  2 1st,  and  last  day  of  each  month,  so  far  as  possible. 
In  cases  where  the  consignees  prefer  to  have  the  bills  on  a 
regular  day  of  each  week,  such  as  Saturday,  their  request 
should  be  complied  with.  Payment  is  required  within  one 
week  after  the  bills  are  rendered. 


Report  of  Unpaid  Bills 

If  the  bills  are  not  paid  within  the  allotted  time,  a  report 
of  that  fact  should  be  made  to  the  comptroller's  office  on  Form 
54.  This  will  show  the  date  and  name  of  the  station,  the  ending 
date  of  the  week  for  which  the  bill  remains  unpaid,  the  full 
name  of  the  party,  the  date  the  bill  was  rendered,  the  amount 
of  the  bill  rendered,  and  the  reason  for  non-payment.  This 
report  should  be  signed  by  the  agent. 

The  report  for  the  week  ending  the  7th  of  each  month 
should  be  forwarded  on  the  1 5th ;  the  report  for  the  week  end- 


120 


"OUTSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
(EXPRESS  DEPARTMENT) 

191 

To  the  Comptroller, 

Head  Office: 
Report  of  Unpaid  Authorized 

Credit  Accounts 

Week  Ending 

NAME 

Date 
Rendered 

Amount 

Reason  for 
Non  Payment 

~~               J 

_^-^-^_^V_— s_— V_-^^-V_^-^-— -^--^-— ^^-^-^^- 

Agent. 

NOTE — Report  for  week  ending  7th  of  each  month  should  be  for- 
warded on  the  15th. 

Report  for  week  ending-  14th  of  each  month  should  be  for- 
warded on  the  22d. 

Report  for  week  ending-  21st  of  each  month  should  be  for- 
warded on  the  1st  of  the  following  month,  and  report 
for  the  period  ending  the  last  day  of  each  month  should 
be  forwarded  on  the  8th  of  the  following  month. 

Each  report  should  include  all  unpaid  accounts  for  pre- 
vious week,  showing  each  week  separately.  Bills  un- 
paid, account  of  disputed  rates  or  other  causes  should 
also  be  reported,  and  if  referred  to  other  departments 
for  adjustment,  give  date  referred,  way-bill  date  and 
number.  


Form  54.    Unpaid  Credit  Accounts.     Size,  8H  x  J4- 


ing  the  14th  should  be  forwarded  on  the  22nd;  for  the  week 
ending  the  21st,  on  the  first  day  of  the  following  month;  and 
for  the  period  ending  the  last  day  of  each  month,  on  the  8th 
of  the  following  month.  Each  report  should  include  all 
unpaid  accounts  for  the  previous  week,  showing  each  week 
separately.  Bills  unpaid  on  account  of  disputed  rates  or 
other  causes  should  also  be  reported,  and  if  referred  to  other 
departments  for  adjustment,  the  date  when  referred  should 
be  stated,  with  the  way-bill  date  and  number.  In  case  of  fail- 
ure to  notify  the  comptroller's  office  of  delays  in  payment,  or 
if  credit  is  granted  without  authority,  the  agent  is  held 
responsible  for  any  loss  which  may  be  sustained. 


EXPRESS    AND    FREIGHT— SUMMARIES  I2i 

Extending  and  Withdrawing  Credit 

Credit  should  be  withdrawn  at  any  time  when  the  agent 
thinks  it  is  no  longer  safe  to  continue  it.  In  the  event  that 
immediate  action  is  necessary,  he  should  notify  comptroller's 
office  at  once.  If  there  is  time  and  opportunity  to  report  the 
matter  by  letter,  it  is  better  to  take  that  course  before  discon- 
tinuing the  credit. 

The  agent  should  also  advise  promptly  of  changes  made 
in  the  name  of  any  concern  for  which  credit  has  been 
authorized. 

The  comptroller's  office  furnishes  a  list  of  concerns  to 
which  credit  has  been  extended.  A  circular  letter  of  instruc- 
tions and  a  list  of  credit  accounts  referred  to  should  be  filed 
together  in  a  convenient  place  for  ready  reference,  and  should 
be  produced  for  the  inspection  of  the  traveling  auditor  when 
checking  the  accounts.  Changes  authorized  from  time  to  time 
by  the  home  office  should  be  entered  on  the  list,  and  the  letter 
of  authority  attached  thereto. 

Abstracting  Way-Bills 

Besides  entering  way-bills  on  the  settling  sheets  the  agent 
must  send  an  abstract  of  them  once  a  period  to  the  comptrol- 
ler's office.  Forwarded  way-bills  are  sorted  and  abstracted 
daily  on  Form  55  according  to  class  order,  namely,  "Freight," 
"Express,"  "Class  C,"  "Class  B,"  and  "Milk"  ;  and  in  numer- 
ical order. 

Received  bills  are  abstracted  at  the  end  of  each  period 
according  to  classification,  division,  date,  and  station  order  on 
Form  56. 

Both  abstracts  should  show  the  total  amount  of  collect 
and  prepaid  footings  as  shown  upon  the  way-bills. 

A  special  sheet  should  be  used  in  reporting  delayed  way- 
bills, which  should  be  headed  "Way-bills  Applying  on  Previ- 
ous Period."     Such  way-bills,  however,  should  be  abstracted 


122 


"OUTSIDE"   ACCOUNTING  WORK 


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EXPRESS   AND    FREIGHT— SUMMARIES 


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"OUTSIDE"   ACCOUNTING   WORK 


in  the  regular  manner  and  carried  forward  to  the  total  of  the 
current  recapitulation  sheet. 

A  special  "forwarded  abstract"  should  be  made  showing 
all  charges  for  storage  on  outward  shipments  and  a  special 
"received  abstract"  showing  all  such  charges  for  inward  ship- 
ments. These  storage  abstracts  should  give  all  the  informa- 
tion called  for  on  the  regular  abstracts  made  up  at  every 
period  and  in  addition  should  show  the  date  the  shipment  was 
delivered.  The  total  amount  of  storage  charges  should  be 
entered  on  the  balance  sheet  under  the  title  of  storage. 

Agents'  Period  Balance  Sheets 

Four  times  a  month,  namely,  at  the  close  of  business  on 
the  /th,  14th,  2 1st,  and  last  day,  the  agent  must  send  to  the 
comptroller's  office  a  balance  sheet  for  the  period  (Form  57). 

The  balance  sheet  should  show  on  the  debit  side  the 
amounts  of  all  collections  made  during  any  given  period, 
namely,  advance  charges  on  received  way-bills,  charges  col- 
lected on  received  way-bills,  and  charges  prepaid  on  for- 
warded way-bills.  The  credit  side  should  show  the  amount 
of  advance  charges  paid  on  forwarded  way-bills  during  the 
period,  the  remittances,  the  amounts  outstanding  on  credit 
accounts,  the  cash  on  hand,  and  such  suspense  accounts  as  are 
authorized  by  the  comptroller. 

Special  Duties  of  Local  Agents — Advance  Charges 

In  addition  to  the  routine  procedure  above  described  for 
the  local  express  offices  a  few  matters  of  more  special  nature 
sometimes  come  up. 

Handling  shipments  with  advance  charges  to  be  collected 
is  always  troublesome.  The  following  rules  should  be  strictly 
observed. 

1.    When  the  local  agent  advances  money  on  a  shipment 


EXPRESS   AND   FREIGHT-SUMMARIES 


125 


THE  WESSEX  COMPANY 

EXPRESS  DEPARTMENT 
AGENT'S  BALANCE   SHEET 

Office 

Balance  Sheet  for days  ending 191 

DEBITS 

To  Advance    Charges   on   Waybills    re- 

To  Freight   Collected   on  Waybills    re- 

To  Prepaid  Collected  on  Waybills  for- 

CREDITS 

By  Advance  Charges  on  Waybills  for- 

By  Balance,  as  below 

The  balance  shown  above  is  made  up 
as  follows: 

Due   from   Sub-Agents   as   per   list   at- 

Authorized  credit  accounts  as  per  list 

I   hereby  certify   that   the   above   is   a   true   statement 
account    with    The    Wessex   Company,    for    the    time    speci 
shown  by  the  books  of  this  station,  and  that  the  articles  of 
mentioned  in  the  accompanying  statement  of  shipments  0 
are  actually  in  my  possession,  and  that  amounts  due  from 
sub-agents  and  authorized  credit  accounts,  are  correct. 

of   my 
fied   as 
freight 
n  hand 
Irivers, 

.Agent 

This  report  must  be  signed  by  the  Agent  PERSONAL! 
not  bv  his  clerk  or  any  other  person,  and  MUST  be  sent 
COMPTROLLER  at  close  of  business  on  the  7th,   14th,   2 
last   dav  of  fiaoh   month. 

Y,  and 
to  the 

Lst  and 

Form  57.     Agent's  Balance  Sheet.     Size,  8>l/z  X  12. 


I26  "OUTSIDE"   ACCOUNTING   WORK 

he  should  obtain  a  receipt  from  the  person  to  whom  the 
money  is  advanced  and  this  receipt  should  be  attached  and 
sent  forward  with  the  billing.  Credit  will  not  be  allowed  for- 
warding agents  unless  this  is  done.  The  shipments  should  be 
way-billed  as  follows: 

Advance  Charges  Our  Charges         Total  to  Collect 

•25  -50  -75 

I.  When  the  agent  makes  up  his  forwarded  abstracts  the 
way-bill  should  be  handled  as  follows: 

Advance  Charges  Freight  Charges 

•25  -50 

When  the  total  of  his  forwarded  abstracts  is  carried  to  his 
balance  sheet  he  should  take  credit  for  25c  to  cover  the  money 
thus  advanced. 

3.  When  a  way-bill  is  received  at  a  local  station  with  an 
advance  charge  to  be  collected  as  follows: 

Advance  Charges  Our  Charges  Total  to  Collect 

•25  -50  -75 

the  agent  should  collect  75c  when  the  shipment  is  delivered. 

4.  When  making  up  his  received  abstracts  the  way-bill 
should  be  handled  as  follows: 

Advance  Charges  Freight  Charges 

•25  -50 

When  making  the  total  of  received  abstracts  to  the  balance 
sheet  the  agent  should  charge  himself  with  75c,  the  amount 
of  money  which  he  has  to  collect. 

Settling  Comptroller's  Corrections 

When  a  correction  is  issued  by  the  comptroller's  office,  the 
agent  should  immediately  investigate  and  settle  it  as  soon  as 
possible.     In  the  case  of  corrections  issued  to  cover  way-bills 


EXPRESS   AND   FREIGHT— SUMMARIES  127 

not  reported,  the  forwarding  agent  should,  upon  request,  fur- 
nish the  agent  upon  whom  the  correction  is  issued  a  copy  of 
the  way-bill  and  all  other  information  which  will  enable  him 
to  settle  the  correction  promptly.  The  cooperation  of  all 
agents  on  this  particular  point  will  make  it  possible  to  settle 
the  above  class  of  corrections  with  a  minimum  of  work. 

All  agents  are  requested  to  keep  a  book  showing  the  num- 
ber and  the  amount  of  each  correction  issued  against  their 
respective  stations.  This  book  should  show  the  date  of  settle- 
ment, or  if  returned  for  cancellation,  the  date  of  return  and 
the  reason  for  cancelling. 

Foreign  Company  Shipments — Outward  Way-Bills 

In  issuing  and  abstracting  way-bills  covering  shipments 
from  a  "foreign"  company  line,  the  procedure  should  be  as 
follows:  In  the  case  of  "collect"  shipments  the  company 
charges  should  be  entered  in  the  column  headed  "Express  or 
Freight  Charges,"  writing  the  word  "Local"  at  the  top  of  the 
column.  Foreign  line  charges  should  be  entered  in  the  col- 
umn headed  "Cartage  Collect,"  writing  "Foreign"  at  the 
top  of  the  column.  The  total  to  be  collected  should,  of 
course,  be  entered  in  the  column  so  headed.  In  the  case  of  a 
prepaid  shipment,  the  "Prepaid"  and  "Cartage  Prepaid"  col- 
umns should  be  used  in  the  same  manner,  heading  them 
"Local"  and  "Foreign"  as  above.     (See  Form  41,  page  103.) 

Foreign  Company  Shipments — Outward  Abstracts 

Separate  sheets,  marked  at  the  top  "Foreign,"  should  be 
used  for  foreign  line  business.  The  way-bills  should  be 
abstracted  in  the  regular  manner,  and  the  charges  entered  in 
columns  corresponding  to  those  on  the  way-bill.  The  totals 
of  the  local  columns  are  carried  to  recapitulation  as  part  of 
the  local  business.  The  totals  of  foreign  columns  are  shown 
as  separate  items,  thus: 


I28  "OUTSIDE"   ACCOUNTING   WORK 


Local 
Express 

Freight 

Advance 
Charges 
$ 

2.00 

Freight 

Charges 

$25.00 

5.00 

50.00 

Cartage 
Collect 

$ 

4.00 

Prepaid 
Shipments 
$20 . 00 
8.00 
30.00 

Cartage 
Prepaid 

$ 

6.00 

Total  Local 

$2.00 

$80.00 

$  4.00 

$58.00 

$  6.00 

Foreign 
Freight 

$ 

$  3.00 
4.00 

$ 

$  4.00 
6.00 

$ 

Total  Foreign 

$ 

$  7.00 

$ 

$10.00 

$ 

Grand  Total 

$2.00 

$87.00 

$  4.00 

$68.00 

$  6.00 

Foreign  Company  Shipments — Inward  Abstracts 

Here  also  separate  sheets,  marked  at  the  top  "Foreign," 
should  be  used  for  foreign  line  business.  Foreign  way-bills 
should  be  abstracted  in  the  regular  manner,  with  the  charges 
entered  in  "Local"  and  "Foreign"  columns,  as  prescribed  for 
outward  abstracts.  If  foreign  line  way-bills  do  not  show 
divisions  of  charges  between  the  two  companies,  the  entire 
charge  should  be  abstracted  in  the  "Foreign"  column  and  the 
division  made  in  the  comptroller's  office. 

Local  and  foreign  totals  are  then  carried  separately  to 
recapitulation,  as  prescribed  for  outward  abstracts,  thus: 

Advance  Freight  Cartage  Prepaid  Cartage 

Local                        Charges  Charges  Collect  Shipments  Prepaid 
Anc  aster  Division 

Express                      $ $10.00          $ $6.00          $ 

Freight                              .50  15.00            8.00            

Winston  Division 

Express                       12.00            10.00            

2.00  1. 00  

Freight                        20 . 00            25 . 00            


Total  Local  $.50  $59.00  $1.00  $49.00 


EXPRESS   AND    FREIGHT— SUMMARIES 


129 


Foreign 
Express 

Advance 
Charges 

$ 

Freight 
Charges 

$  2.00 
3.00 

Cartage 
Collect 

$ 

Prepaid 

Shipments 

$  4.00 
5-00 

Cartage 
Prepaid 

$ 

Freight 

Total  Foreign 

$.... 

$  5-oo 

$ 

$  9.00 

$ 

Grand  Total 

$■ 

5o 

$64.00 

$1.00 

$58.00 

$ 

All  collect  charges  on  received  abstracts  and  all  prepaid 
items  on  forwarded  abstracts  are  summarized  on  balance 
sheets  as  usual. 

The  differentiation  between  local  and  foreign  columns 
under  these  captions  is  used  only  on  abstracts.  The  terms 
will  not  appear  on  the  agent's  recapitulation. 

Agents  should  see  that  the  total  weight  as  shown  on  the 
way-bills  is  inserted  on  the  abstracts  in  connection  with  all 
traffic  exchanged  with  the  foreign  line  companies. 


CHAPTER    VIII 

EXPRESS  AND   FREIGHT   SERVICE- 
RECAPITULATIONS 

Work  in  Comptroller's  Office 

The  work  in  the  comptroller's  office  in  connection  with  the 
express  and  freight  business,  while  not  particularly  compli- 
cated is  full  of  possibilities  of  error,  and  needs  close  attention; 
none  but  a  first-class  clerk  should  ever  be  delegated  to  this 
work. 

The  accounting  for  freight  and  express  work  is  different 
from  the  accounting  for  the  passenger  work,  as  so  much 
depends  upon  the  correctness  of  the  billing  of  the  freight  and 
express  matter,  particularly  in  assessing  charges  for  the  ser- 
vice performed  in  conformity  to  the  published  tariffs  of  rates. 
Much  depends  also  upon  the  correctness  of  the  records  at  the 
different  stations. 

In  connection  with  this  work  there  is,  first,  the  task  of 
checking  the  reports  from  local  offices,  the  agents'  balance 
sheets,  and  the  abstracts  of  way-bills. 

Next,  there  is  the  task  of  calculating  earnings  by  stations 
and  by  divisions.  In  this  work  the  corrected  abstracts  of  way- 
bills are  checked  against  the  reports  of  cash  deposits  from 
the  agents  at  the  various  stations  and  from  the  company 
treasurer. 

In  addition,  the  comptroller's  staff  must  attend  to  the  col- 
lection of  unpaid  bills  of  credit  shippers  and  must  adjust  and 
settle  claims  for  damage  to  shipments. 

130 


EXPRESS   AND    FREIGHT— RECAPITULATIONS         I3I 

Checking  Way-Bills  and  Abstracts 

The  abstracts  of  way-bills  come  from  the  stations  four 
times  a  month  on  Forms  55  and  56.  With  them  come  the 
original  way-bills  in  bundles.  The  "forwarded"  abstracts 
must  be  checked  against  the  "received"  and  both  against  the 
agent's  balance  sheet  (Form  57)  also  sent  in  once  a  month. 

A  convenient  method  is  as  follows: 

1.  The  way-bills  should  be  sorted  by  express  stations, 
those  of  each  station  grouped  by  classes,  as  Express,  Freight, 
Class  C,  Class  B,  and  Milk,  if  more  than  one  class  is  repre- 
sented.   As  a  rule,  the  last  two  classes  will  figure  but  little. 

2.  The  footings  on  all  abstracts  and  on  the  recapitulation 
or  summary  sheets  should  be  verified  and  any  errors  noted  in 
red  ink.  The  figures  here  shown  should  be  checked  with  those 
on  the  agent's  balance  sheet. 

3.  The  "forwarded"  and  "received"  abstracts  should  be 
checked  together  and  the  date,  number,  destination,  and 
charges  noted  for  each  way-bill  entered.  By  beginning  with 
the  "forwarded"  abstracts  of  one  station  and  checking  the 
"received"  abstracts  of  each  of  the  other  stations  with  these, 
quickest  and  most  certain  progress  is  made. 

Many  cases  will  occur,  of  course,  in  which  the  two  sets 
of  abstracts  will  not  exactly  tally.  For  these  cases  the  origi- 
nal way-bills  should  be  looked  up  and  the  abstract  corrected. 

If  the  way-bill  is  found  in  the  abstract  of  one  station  with- 
out the  corresponding  way-bill  in  the  abstract  from  the  other 
station,  it  must  be  added  to  the  summary  of  these  abstracts 
or  deducted  from  it,  according  to  the  date  of  the  way-bill. 
For  instance,  in  checking  the  period  for  seven  days  ending 
July  7th,  everything  dated  previous  to  July  1st  should  be 
deducted  and  noted  with  this  mark,  ( — )  ;  if  the  way-bill  which 
cannot  be  checked  is  dated  since  July  1st,  it  should  be  added  to 
the  report  and  noted  with  a  different  mark,  (  +  ).  In  large 
offices  it  will  take  all  the  time  of  two  clerks  to  do  the  checking 


132 


"OUTSIDE"   ACCOUNTING   WORK 


above  outlined,  and  the  actual  addition  and  deduction  of  items 
from  the  abstracts  will  probably  have  to  be  done  by  a  third 
clerk. 

Checking  Unreported  Way-Bills 

After  making  the  corrections  and  notations  the  abstract 
should  be  gone  over  again  and  all  way-bills  with  the  mark  (  +  ), 
denoting  that  they  should  be  added,  should  be  drawn  off  and 
listed  under  the  station  which  reports  them,  the  "forwarded" 
way-bills  in  one  list  and  the  "received"  way-bills  in  another. 
The  way-bills  marked  ( — ),  denoting  that  they  should  be 
deducted,  should  be  checked  with  the  list  of  added  way-bills 
of  previous  periods. 

Way-Bill  Transit  Book 

At  the  end  of  each  month  these  lists  should  be  checked 
and  all  those  way-bills  which  have  been  added  without  cor- 
responding deductions  being  reported  should  be  written  up  in 
a  small  way-bill  transit  book,  used  as  a  memorandum  to  keep 
track  of  these  items.  The  current  month  only  is  recorded  on 
the  lists  and  all  outstanding  way-bills  previous  to  the  current 
month  are  recorded  in  the  way-bill  transit  book. 

Balance  Sheet  Corrections 

The  abstracts  thus  checked  should  be  re-examined,  the  red 
ink  changes  noted,  and  the  abstracts  footed  again.  The 
changes  must  be  carried  to  the  recapitulation  or  summary  of 
the  abstracts,  and  from  there  to  the  agent's  balance  sheet.  For 
all  changes  which  affect  the  balance,  correction  notices  must 
be  sent  to  the  agent  on  Form  58. 

The  serial  number  of  this  notice  must  be  marked  on  the 
balance  sheet  opposite  the  change,  so  that  the  total  of  these 
correction  notices  will  agree  with  the  changes  on  the  agent's 


EXPRESS   AND    FREIGHT— RECAPITULATIONS 


133 


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134 


"OUTSIDE"   ACCOUNTING   WORK 


balance  sheet.  The  notice  must  show  whether  the  correction 
is  a  charge  or  a  credit  to  the  agent.  For  instance,  if  an  agent 
shows  the  charges  on  a  way-bill  as  20c  and  the  way-bill  shows 
that  it  should  be  30c  this  difference  of  10c  should  be  charged 
to  the  agent;  while  if  the  case  is  the  opposite  of  the  above,  the 
difference  should  be  credited  to  the  agent.  The  notice  should 
be  made  out  in  duplicate,  the  original  being  sent  to  the  agent 
and  the  duplicate  placed  in  a  separate  "station"  file  in  the 
office  of  the  comptroller,  until  the  agent  shows  on  his  balance 
sheet  that  the  correction  has  been  taken  care  of ;  then  the  dupli- 
cate should  be  taken  from  the  "station"  file  and  placed  in  the 
regular  files. 

The  Correction  Ledger 

At  the  end  of  every  month  the  correction  notices  issued  to 
the  various  agents  during  the  month  but  which  have  not  yet 
been  settled,  should  be  charged  or  credited  to  the  agents  in  a 
"Correction  Ledger."  This  ledger  has  an  account  with  each 
agent  which  is  balanced  every  month.  The  balance  of  any 
agent's  account  at  the  end  of  a  month,  as  shown  in  the  cor- 
rection ledger,  should  agree  with  the  difference  between  the 
balance  at  the  end  of  the  same  month  as  shown  on  the  agent's 
balance  sheet,  and  the  balance  as  shown  in  the  express  agents' 
ledger  (page  137).  In  other  words,  a  record  as  compiled  in 
the  general  office  for  a  month  may  show  a  charge  against  an 
agent  of  $1,000,  while  the  record  as  compiled  by  the  agent 
may  show  that  he  owes  the  company  $990.  By  reference  to 
the  correction  ledger  balance  referred  to  we  find  that  correc- 
tion notices  have  been  sent  to  the  agent  advising  him  of  errors 
to  the  extent  of  $10  against  him  and  that  at  the  time  of  send- 
ing in  his  reports  he  has  failed  to  charge  himself  with  this 
amount  of  $10. 

When  these  corrections  are  reported  by  the  agents  as  set- 
tled the  date  is  posted  in  the  correction  ledger.     The  correc- 


EXPRESS   AND   FREIGHT— RECAPITULATIONS         135 

tions  outstanding  at  any  time  thus  represent  a  detail  of  the 
difference  between  the  agents'  accounts  and  the  account  in  the 
comptroller's  office,  as  explained  above. 

Checking  Agents'  Remittances 

The  reports  just  referred  to  come  to  the  comptroller's 
office  once  a  period,  on  the  7th,  14th,  21st,  and  last  day  of 
the  month.  On  the  other  hand,  a  report  of  the  cash  deposited 
by  local  agents  is  sent  by  the  banks  to  the  comptroller's  office 
daily  on  Form  59.      The  amount  of  the  daily  remittance  of 


THE  WESSEX  COMPANY 

EXPRESS  DEPARTMENT 


Remitted  by.. 

Agent  at 

To  Cashier  at. 


191. 


PLEASE    LIST  EACH    CHECK  SEPARATELY 


Specie. 
Bills  .. 
Checks 


Dollars 


Cents 


.Total, 


Remittance  of 191 . 

From  Agent  at 

Received  by 

Cashier  at 

In  the  Amount  of 


Form  59.    Bank  Report  of  Agent's  Remittance.    Size,  3l/2  X  8%, 


each  agent  should  be  posted  in  a  remittance  ledger  under  the 
proper  station  heading  and  the  date  of  deposit.  At  the  end 
of  each  month  the  total  remittances  from  each  station  for  the 


136 


"OUTSIDE"   ACCOUNTING   WORK 


month  could  be  posted  in  the  back  of  the  remittance  ledger, 
where  a  summary  might  be  kept.  A  statement  is  sent  to  the 
comptroller's  office  every  day  from  the  office  of  the  treasurer 
of  the  company,  showing  the  amount  deposited  by  each  sta- 
tion, according  to  the  agent's  advice  to  the  treasurer,  which 
amount  is  certified  by  the  cashier  of  the  bank  in  which  the 
money  is  deposited.  This  list  from  the  treasurer's  office 
should  be  checked  with  the  reports  on  Form  59. 

At  the  end  of  every  period  the  amount  which  the  agent 
shows  on  his  balance  sheet  as  "Cash  Remitted  to  Treasurer" 
is  also  checked  with  the  remittance  ledger,  and  any  differences 
are  taken  up  with  the  agent. 

Compiling  Earnings — By  Stations 

The  earnings  of  the  road  must  now  be  figured  by  stations 
and  divisions.  The  earnings  of  stations  are  shown,  of  course, 
on  the  recapitulation  or  summary  sheets  and  also  on  the 
agents'  balance  sheets.  The  total  shown  on  the  agent's  bal- 
ance sheet  of  "advance  charges  on  way-bills  received," 
"freight  collected  on  way-bills  received,"  and  "prepaid  charges 
on  way-bills  forwarded,"  represents  the  earnings  of  the  station 
and  should  agree  with  the  figures  on  the  recapitulation  or  sum- 
mary sheet. 

Compiling  Earnings — By  Divisions 

In  compiling  the  earnings  of  divisions  the  earnings  of 
each  station  are  posted  on  the  recapitulation  or  summary 
sheets  to  the  various  divisions  under  the  proper  headings  or 
classes  of  freight  or  express  handled. 

While  thus  posting  the  division  earnings  they  may  be 
checked  conveniently  by  a  proof  sheet  as  follows:  (1)  the 
total  earnings  of  each  station  as  shown  on  the  recapitulation 
or  summary  sheets  should  be  checked  with  the  balance  sheet; 


EXPRESS   AND    FREIGHT— RECAPITULATIONS 


137 


(2)  the  proof  sheet  should  be  footed  and  the  total  checked 
with  the  sum  of  the  totals  of  the  different  classes  of  business 
as  shown  in  the  earnings  ledger. 

Express  Agents'  Ledger 

This  is  a  small  columnar  ledger  in  which  an  agent's  name 
is  written  at  the  top  of  each  column  and  the  total  amount  of 
earnings  of  each  station  as  shown  upon  the  proof  sheet  is 
posted  as  a  debit  against  the  agent  of  that  station.  The 
agents  are  credited  with  cash  deposited  by  them  as  shown  on 
the  remittance  ledger  and  with  any  advance  charges  on  way- 
bills forwarded  as  shown  on  their  balance  sheets. 

All  correcting  journal  entries  affecting  agents'  accounts 
are  posted  in  this  agents'  ledger  as  a  charge  or  credit,  as  the 
case  may  be.  At  the  end  of  the  month  the  balance  is  taken 
from  this  ledger ;  and  the  balance  due  from  each  agent  on  the 
last  day  of  the  month  should  agree  with  the  balance  he  shows 
on  his  own  balance  sheet  for  the  last  period  of  the  month,  tak- 
ing into  consideration  the  amounts  shown  in  the  correction 
ledger. 

Preparing  Entries  for  General  Journals 

As  soon  as  the  work  for  the  month  has  been  checked  and 
written  up  in  the  detailed  books  as  just  outlined,  regular 
monthly  journal  entries  should  be  prepared  for  the  general 
books  by  the  auditor  of  freight  receipts,  or  head  clerk  in 
charge  of  the  express  and  freight  service. 

The  following  entries  should  be  made  each  month: 

Sundry  Agents — Express  Department $50,000.00 

To  Sundries : 

Operating  Revenue $49,000.00 

Advance    Charges 500.00 

Foreign  Street  Ry.  Co.  Joint  Freight 
Acct 500.00 


I38  "OUTSIDE"   ACCOUNTING  WORK 

For  amount  of  Revenue,  Advance  Charges 
on  way-bill  received  and  foreign  charges 
for  the  Foreign  Street  Railway  Company, 
as  per  analysis  of  earnings  ledger. 


Cash  in  Transit 38,000.00 

To  Sundry  Agents,  Express  Department  38,000.00 

For   the   amount    of   remittances   made    by 

agents  during  the  month  of , 

as  per  agents'  remittance  book. 

Operating  Revenue 10.00 

To  Sundry  Agents,  Express  Department  10.00 

For  the   amount  of  comptroller's   corrections 

cancelled  during  the  month  of , 

as  per  detail  on  file  for  this  entry. 


Foreign  St.  Ry.  Co.  Joint  Freight  Account. . . .  50.00 

To  Operating  Revenue 50.00 

For  amount  of  charges  collected  on  way- 
bills by  the  Foreign  St.  Ry.  Co.  during  the 

month  of ,  as  per  detail  on  file 

for  this  entry. 

Advance  Charges 300.00 

To  Sundry  Agents,  Express  Department  300.00 

For  amount  of  charges  advanced  by  various 
agents  on  forwarded  way-bills  during  the 

month  of ,  as  per  detail  on  file 

for  this  entry. 

Sundries   20.00 

To  Operating  Revenue : 

Sundry  Agents,  Express  Dept 18.00 

Advance  Charges 2.00 

For  amount  of  comptroller's  special  correc- 
tions issued  during  the  month  of , 

as  per  detail  on  file  for  this  entry. 


EXPRESS   AND   FREIGHT— RECAPITULATIONS 


139 


Operating-  Revenue 50.00 

To  Sundry  Agents,  Express  Department  50.00 

For  amount  of  relief  given  to  various  agents 
on  company  shipments,  as  per  detail  on 
file  for  this  entry. 


Way-Bill  Transit  Account 400.00 

To  Sundries : 

Operating  Revenue 350.00 

Advance  Charges 50.00 

For  amount  of  way-bills  for  the  month  of 

in  transit,  as  per  way-bill  transit 

book. 


Sundry  Agents,  Express  Department 200.00 

To  Way-Bill  Transit  Account 200.00 

For  amount  of  way-bills  not  reported  dur- 
ing the  month  of which  are  cov- 
ered by  comptroller's  corrections,  as  per 
detail  in  way-bill  transit  book. 


Sundries 400.00 

To  Way-Bill  Transit  Account: 

Operating  Revenue 350.00 

Advance  Charges 50.00 

For  amount  of  way-bills  in  transit  reported 

by  agents  during  month  of ,  as 

per  detail  in  way-bill  transit  book. 

It  is  to  be  understood,  of  course,  that  the  figures  included  in 
the  above  entries  are  merely  used  as  an  example,  being  purely 
imaginary. 

Collection  of  Bills 

The  comptroller's  office  has  the  task  also  of  collecting  bills 
which  the  local  agents  have  not  succeeded  in  getting  in.  The 
procedure  followed  is  outlined  in  connection  with  Chapter 
XIX. 


140 


"OUTSIDE"   ACCOUNTING  WORK 


Claims  for  Losses,  Damages,  and  Overcharges 

One  other  distinct  branch  of  work  is  handled  in  the  comp- 
troller's office  in  connection  with  the  express  and  freight  busi- 
ness, namely:  settling  claims  for  losses,  damages,  and  over- 
charges. This  matter  is  entirely  in  the  hands  of  a  special 
clerk  called  an  "Express  Claims  Adjuster"  who  reports 
directly  to  the  comptroller. 

Registering  Claims 

Invoices  received  for  loss  or  damage  should  be  given  a 
number,  entered  in  a  claims  register  (Form  60),  and  placed 
in  the  active  claim  file. 


THE  WESSEX 

Ctaim  No. 

Date 

CLAIMANT 

Address 

GOODS  ALLEGED  TO  HAVE  BEEN 

Lost 

Damaged 

Left-hand  Paqe 

COMPANY 

AMOUNT 

FROM 

TO 

Date 
Shipped 

PARTICULARS 

DISPOSITION 

Right-hand  Page 

b 

Form  60.     Express  Claims  Register   (left-hand  and  right-hand 
pages).     Size,  10  X  14. 

Claims  should  be  supported,  if  possible,  by  the  original 
way-bill,  the  original  bill  of  lading,  and  a  copy  of  the  original 


EXPRESS    AND    FREIGHT— RECAPITULATIONS 


141 


invoice  covering  the  shipment  in  question,  the  claims  being 
entered  and  numbered.  A  postal  card  (Form  61)  should  be 
sent  to  the  claimant  calling  for  such  papers  as  the  claimant  has 


neglected  to  file. 


THE  WESSEX  COMPANY 
EXPRESS  DEPARTMENT 
Office  of  the  Comptroller 


.191 


Dear  Sir: 

Your    claim    of 

for    .- amounting 

to   $ has  been  received   and   will 

have   our   prompt   attention.     If   necessary    to    refer 
to  same   again    please   quote   number 

In  order  that  adjustment  of  your  claim  may  be 
facilitated  as  much  as  possible,  will  you  in  future 
kindly  forward  your  claims  made  against  this  com- 
pany direct  to  the  undersigned. 

All  claims  should  be  supported  by  the  original 
receipt  and  copy  of  original  invoice,  covering  the 
goods  involved,  and  in  the  event  that  either  of  such 
documents  cannot  be  furnished,  I  would  respectfully 
request  that  their  absence  be  explained  in  first  sub- 
mitting the  claim,  so  that  unnecessary  corres- 
pondence and  delay  may  be  avoided  as  far  as  pos- 
sible. 

Yours  truly, 

Comptroller. 


Form  61.     Express  Claim  Post-Card.     Size,  zVa   x  5/^- 

In  case  the  claimant  does  not  comply  with  the  request  for 
certain  papers  at  the  end  of  six  days  the  claim  may  be  removed 
from  the  active  file  until  the  claimant  again  takes  the  matter 
up  with  the  company.  Proper  record  should  be  entered,  of 
course,  on  the  claim  register  to  show  in  what  file  the  papers 
have  been  placed. 

Investigating  Claims 

The  investigation  of  a  claim  should  be  started  at  once.  A 
copy  of  the  way-bill  should  be  obtained  from  the  forwarding 
agent  and  a  copy  of  the  delivery  record  from  the  receiving 


I42  "OUTSIDE"   ACCOUNTING   WORK 

agent.  In  case  of  a  loss  these  two  records  should  be  compared 
with  the  original  bill  of  lading  to  make  sure  that  the  shipment 
was  in  good  order,  etc.,  when  the  company  received  it.  The 
forwarding  agent  should  issue  general  tracers  to  all  stations 
in  connection  with  goods  gone  astray,  which  tracers  should 
be  filed  with  the  claim  when  received.  While  there  is  no  fixed 
rule  so  far  as  a  general  investigation  is  concerned,  it  is  impor- 
tant that  in  case  of  a  loss  the  forwarding,  receiving,  and  trans- 
fer records,  if  any,  be  examined  and  that  all  employees  having 
knowledge  of  a  loss  or  damage  be  interviewed,  if  necessary, 
in  order  that  all  the  facts  possible  may  be  obtained. 

The  "Over,  Short  and  Damaged"  reports  (Form  46) 
sent  up  from  the  local  offices  should  be  examined  closely  each 
day,  as  a  "short"  report  at  one  point  may  be  accounted  for  by 
an  "over"  report  elsewhere.  The  claims  register  should  be 
indexed  as  near  to  date  as  possible.  It  is  the  duty,  of  course, 
of  the  forwarding  agent  to  issue  tracers  on  all  shipments 
reported  "short"  by  receiving  agents,  and  it  is  the  duty  of  all 
other  agents  to  respond  immediately  to  tracers.  It  is  well, 
however,  to  carry  a  memorandum  in  the  general  office  of 
goods  short  and  astray;  and  when  the  adjuster  is  calling  at  the 
various  stations  he  should  keep  a  lookout  himself  for  all  goods 
that  have  been  reported  short. 

Adjustment  of  Claims 

Having  obtained  the  facts  and  with  the  records  in  hand  it 
should  be  an  easy  matter  to  dispose  of  the  claim.  If  the  com- 
pany's records  show  that  the  consignee  has  received  the  ship- 
ment in  question  complete  and  in  good  order,  the  claimant 
should  be  notified  by  letter  that  the  claim  is  declined,  with 
reasons  therefor.  If  the  records  of  the  company  show  that 
there  is  a  loss  or  damage  and  the  investigation  proves  the  com- 
pany's liability  beyond  a  doubt,  then  a  voucher  should  be 
drawn  in  favor  of  the  claimant  with  a  brief,  clear  statement  of 


EXPRESS    AND    FREIGHT— RECAPITULATIONS 


H3 


the  facts  in  connection  with  the  loss  or  damage,  this  statement 
to  be  addressed  to  the  comptroller  and  attached  to  the  voucher 
which  is  passed  on  to  the  comptroller  for  his  approval. 

In  case  of  doubt  as  to  final  disposition  of  a  claim  the  legal 
department  of  the  company  should  be  consulted. 

Filing  Report 

After  the  month's  work  in  connection  with  the  express 
and  freight  service  is  completed  all  reports  should  be  carefully 
filed ;  the  way-bills  should  be  bound  up  in  volumes  and  plainly 
marked  and  filed.  For  this  work  a  binding  machine  can  be 
used  to  advantage. 


CHAPTER     IX 

AUXILIARY    OPERATIONS 

Incidental  Revenue  from  Transportation  Services 

In  the  preceding  chapters  on  the  passenger  and  express 
services  the  principal  sources  of  revenue  for  a  street  railway 
company  have  been  discussed.  There  are  a  few  incidental 
sources  of  revenue  in  connection  with  the  passenger  service, 
such  as  the  receipts  from  advertising  in  cars  and  from  station 
rentals,  but  these  call  for  very  little  accounting  work.  The 
advertising  privileges  are  usually  rented  out  to  some  advertis- 
ing agency  and  a  single  monthly  bill  is  made  out  in  the  comp- 
troller's office  for  the  monthly  proportion  of  the  yearly  con- 
tract.    Station  rentals  are  treated  in  the  same  way. 

A  few  other  minor  items  of  revenue  are  taken  care  of  in 
the  comptroller's  office  by  means  of  bills,  as  explained  in 
Chapter  XIX. 

Accounting  for  Outside  Enterprises 

Street  railway  companies  occasionally,  however,  conduct 
other  enterprises  in  connection  with  their  regular  work  of 
transportation.  There  is  much  less  of  this  than  in  former 
years,  but  it  is  still  a  frequent  practice  for  a  company  to  fur- 
nish steam  or  electric  power  for  heating,  lighting,  or  other 
purposes.  Some  companies  furnish  gas  or  water  to  a  com- 
munity; some  own  and  operate  amusement  parks.  To  lay 
down  rules  for  the  accounting  work  in  connection  with  such 
auxiliary  operations  is  very  difficult.  Complete  detailed  rec- 
ords should  be  kept  in  every  case,  and  the  books  should  con- 

144 


AUXILIARY    OPERATIONS  145 

form  in  a  general  way  to  the  books  of  the  regular  railway 
business;  further  than  that  the  matter  depends  entirely  on 
local  conditions  and  on  the  nature  of  the  outside  operations. 

Interstate  Commerce  Commission  System 

For  companies  under  the  control  of  the  Interstate  Com- 
merce Commission  a  very  definite  rule  regarding  these  auxil- 
iary operations  is  laid  down  in  the  Commission's  "Uniform 
System  of  Accounts  for  Electric  Railways,"  issue  of  iQi4» 
under  sections  2  and  3  of  the  general  instructions.  According 
to  this  ruling,  street  railway  companies  conducting  outside 
enterprises  shall  "treat  such  operations  or  service  as  auxiliary 
operations"  and  "keep  separate  revenue  and  expense  accounts 
for  each  auxiliary  operation  conducted,"  although  including 
"the  aggregate  of  the  revenues  and  the  aggregate  of  the 
expenses  of  auxiliary  operations  in  the  respective  accounts 
provided  therefor  in  the  income  classification." 

The  commission  further  stipulates  that  expenses  in  con- 
nection with  the  maintenance  and  operation  of  plant  and 
equipment  in  auxiliary  operations  shall  be  carefully  excluded 
from  the  railway  expenses  by  means  of  separate  accounts.  On 
the  other  hand,  if  "a  carrier  furnishes  power,  light  or  heat 
only  incidentally,  such  incidental  revenues  and  expenses  may 
be  included  in  the  railway  operating  revenues  and  expenses." 

Sale  of  Electricity,  Water,  or  Gas 

It  is  not  possible  here  to  do  more  than  discuss  a  few  points 
of  rather  general  interest.  One  of  these  is  the  sale  of  electric- 
ity and  occasionally  gas  or  water. 

It  sometimes  happens  in  a  district  where  there  is  no  regu- 
lar electric  light  or  power  service  that  a  street  railway  com- 
pany is  asked  to  furnish  such  service  from  the  trolley  feeders 
or  wires  and  similar  lines.  Occasionally  also,  for  some  special 
reason,  a  company  may  furnish  gas  or  water  to  single  con- 


l46  "OUTSIDE"   ACCOUNTING   WORK 

sumers  or  to  small  groups.     The  accounting  for  all  this  may 
be  conveniently  placed  in  the  care  of  the  division  cashiers. 

Such  service,  small  though  it  is  in  amount,  necessitates 
careful  arrangement  with  regard  to  lamps  and  other  equip- 
ment,  meters,  deposits  from  consumers,  receipt  forms,  and  so 
^xperience  has  developed  a  number  of  suggestions  and 
cautions  regarding  the  method  and  form  of  office  procedure 
in  such  dealings. 

Accounting  for  Meters,  Arc  Lamps,  and  Transformers 

The  following  plan  applies  to  gas  and  water  service  as  well 
as  electric  service: 

i.  All  meters,  arc  lamps,  and  transformers  should  be 
given  company  numbers  as  soon  as  received.  A  separate  series 
of  consecutive  numbers  commencing  with  number  one  may  be 
used  for  each  of  the  different  items,  consisting  of  electric 
meters,  gas  meters,  water  meters,  arc  lamps,  and  transformers. 

2.  The  division  cashier  should  be  furnished  promptly 
with  the  proper  information  to  enable  him  to  keep  the  records 
up  to  date. 

3.  When  invoices  covering  the  purchase  of  any  of  the 
above  articles  are  forwarded  to  the  comptroller's  office  for 
payment,  a  memorandum  must  be  attached  showing  the  com- 
pany number  applied  to  each  article,  the  date  received,  the 
maker's  name,  the  type,  capacity,  and  cost. 

4.  When  any  of  the  articles  are  transferred  from  one 
division  to  another,  a  report  of  the  transfer  should  be  made 
in  duplicate,  the  original  being  sent  to  the  comptroller's  office ; 
the  duplicate  to  the  manager  of  the  other  division.  This 
report  should  show  the  name  of  the  forwarding  division,  the 
date  of  transfer,  the  name  of  the  receiving  division  to  which 
the  article  was  sent,  the  company  number,  maker,  type,  and 
capacity;  and  should  be  signed  by  the  manager  of  the  for- 
warding division.      The  manager  of  the  receiving  division 


AUXILIARY   OPERATIONS  147 

should  immediately  number  the  article  according  to  his  own 
series,  and  have  it  entered  properly  on  his  own  record.  He 
should  then  enter  on  the  duplicate  report  referred  to  the  com- 
pany number  he  has  assigned  to  each  of  the  articles,  indorse 
the  original  with  his  signature  as  received,  and  send  it  to  the 
comptroller's  office  for  proper  transfer  in  the  accounts. 

5.  When  any  of  the  above  items  are  condemned  as  unfit 
for  further  use,  the  division  manager  should  make  a  report  to 
the  comptroller  showing  the  company  number,  maker,  type, 
capacity,  the  date  when  condemned,  and  the  reason  for  con- 
demnation. Upon  receipt  of  word  from  the  comptroller 
accepting  the  report,  the  division  cashier  should  enter  in  the 
proper  place  in  his  record  book  under  the  item  referred  to,  the 
word  "condemned"  with  the  date.  In  the  back  of  his  record 
book  he  should  enter  on  the  top  of  the  page  the  word  "con- 
demned" and  underneath  write  the  number,  the  date  of  the 
condemnation,  the  reason,  and  by  whom  authorized.  The 
articles  condemned  should  be  held  in  stock  with  the  badge 
number  on  until  permission  is  obtained  from  the  comptroller's 
office  to  destroy  them.  Usually  they  will  be  counted  and 
destroyed  by  a  representative  from  the  comptroller's  office. 

6.  When  any  of  the  items  referred  to  are  sold  the  division 
cashier  should  report  the  sale  to  the  comptroller,  giving  the 
company  number,  maker,  type,  capacity,  date  sold,  name  and 
address  of  purchaser,  and  the  amount  sold  for.  The  sale 
should  not  be  handled  in  the  local  accounts,  but  should  be  cov- 
ered by  bills  collectible  issued  from  the  comptroller's  office. 
The  badges  removed  from  the  items  sold  should  be  sent  to  the 
comptroller  with  the  notification  of  the  sale.  The  division 
cashier  on  receipt  of  advice  from  the  comptroller  should  enter 
in  his  record  book  under  the  proper  item  the  word  "sold"  with 
the  date,  and  should  keep  a  record  of  the  articles  sold,  in  the 
back  of  his  book,  in  the  same  manner  as  prescribed  for  those 
condemned. 


I48  "OUTSIDE"   ACCOUNTING   WORK 

Meter  Deposits — Records  for  Main  and  Division  Offices 

As  meter  deposit  receipts  are  issued  the  division  cashiers 
should  send  in  a  list,  using  the  blank  lines  on  Form  28,  show- 
ing for  all  outstanding  receipts  the  serial  number,  the  date,  the 
name  of  the  person  to  whom  issued,  the  department  (electric, 
gas  or  water),  and  the  amount. 

The  cashier  should  inform  the  comptroller's  office  daily 
on  Form  7  of  the  amount  deposited  in  the  bank. 

In  addition  to  this  the  division  cashiers  should  be 
instructed  to  send  in  at  least  twice  a  year,  on  March  31  and 
September  30,  a  record  of  their  outstanding  meter  deposits  so 
that  it  can  be  checked  up  against  the  office  records. 

In  the  comptroller's  office  a  record  of  such  deposits  is  kept 
in  an  ordinary  journal  ruled  book  or  in  a  book  made  up  for 
the  purpose.  It  should  be  lettered  on  the  outside,  "Record  of 
Meter  Deposits  No.  1"  and  divided  into  sections  for  each 
division. 

When  the  meter  deposits  are  refunded  to  depositors,  which 
is  done  through  the  cashier's  working  fund,  as  explained 
below,  proper  entries  must  be  made  in  this  record  book  in  the 
main  office  to  show  these  repayments. 

If  from  time  to  time  the  amount  of  a  deposit  is  applied 
in  settlement  of  an  account  against  an  individual  and  the  bal- 
ance of  the  deposit,  if  any,  is  either  paid  over  or  allowed  to 
remain  on  deposit  with  the  company,  suitable  entries  must  be 
made  in  this  book. 

This  record  of  deposits  should  be  balanced  against  the  gen- 
eral ledger  at  the  end  of  each  month.  This  record  in  the 
comptroller's  office  should  show  the  number,  date,  name, 
department  (that  is,  electric,  gas,  or  water),  the  amount  of 
deposit,  and  the  balance  due  on  the  deposit.  The  last  column 
should  be  used  (only  as  a  memorandum)  where  a  part  of  the 
deposit  has  been  taken  to  apply  in  settlement  of  an  account 
and  there  is  a  balance  due  the  company  on  it.    At  the  head  of 


AUXILIARY   OPERATIONS 


149 


the  right-hand  page  should  be  entered  the  word  "settled"  and 
under  this  should  appear  the  number,  name,  date,  address, 
and  the  amount  which  has  been  repaid  or  used  in  settlement 
of  the  company's  account.  In  the  column  "Particulars" 
should  appear  a  brief  statement  as  to  whether  the  amount  was 
repaid  or  used  in  the  liquidation  of  the  company's  account. 
The  balance  of  this  book  can  be  obtained,  of  course,  by  simply 
footing  the  column  on  the  left-hand  page,  which  footing  once 
made  remains  unchanged — the  column  on  the  right-hand 
page,  of  course,  must  be  footed  each  month — and  then  sub- 
tracting the  right-hand  page  from  the  left.  This  balance  in 
the  column  should  agree  with  the  account  on  the  general  ledger. 

A  record  should  be  kept  of  all  meter  deposit  blanks  sent  to 
the  division  cashier  in  the  same  manner  as  the  record  of  tick- 
ets is  kept,  that  is,  by  serial  numbers. 

Care  should  be  taken  by  the  cashiers  to  issue  the  meter 
deposit  slips  in  numerical  order.  All  receipts  which  the  cash- 
ier spoils  in  issuing  should  be  entered  on  the  report  of  receipts 
issued,  but  with  the  "amount"  space  left  blank  and  a  notation 
on  it  stating  "spoiled,"  and  the  spoiled  slips  should  be  attached 
to  the  report.  When  the  clerk  in  writing  up  the  record  from 
this  weekly  report  finds  a  spoiled  slip  he  will  merely  enter  the 
number  and  write  in  the  words  "spoiled  in  issuing,"  leaving 
the  amount  space  blank  and  the  spoiled  receipt  attached  to  the 
weekly  report. 

Receipts  for  Meter  Deposits 

When  a  consumer  makes  a  deposit  to  the  company  as 
security  for  the  payment  of  his  bills,  the  only  receipt  issued  to 
him  should  be  one  similar  to  Form  62.  In  no  case  must  a  tem- 
porary receipt  be  given  followed  by  a  regular  receipt. 

Consumers  should  be  encouraged  to  make  their  deposits  at 
the  division  office,  but  when  this  imposes  a  hardship  it  is 
proper  to  have  the  workman  who  installs  the  service  take  with 


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"OUTSIDE"   ACCOUNTING   WORK 


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AUXILIARY    OPERATIONS 


151 


him  a  regular  receipt  filled  out  by  the  cashier,  which  he  will 
sign  and  give  the  consumer  when  he  receives  the  money. 
Occasionally  a  case  may  occur  where  the  workman  collects 
the  deposit  without  having  in  his  possession  a  regularly  filled 
out  receipt,  principally  because  the  necessity  of  securing  the 
deposit  depended  upon  his  investigation  of  the  case.  The 
workman  assigned  to  such  a  job  should  have  always  with  him 
copies  of  an  ordinary  acknowledgment  of  money  received, 
Form  63,  which  he  can  sign  and  give  out  if  the  consumer  is 
not  willing  to  wait  for  the  regular  receipt.  The  workman 
should  report  to  the  cashier  the  issue  of  this  acknowledgment 
of  money  received  when  he  turns  in  the  deposit  money. 


ACKNC 
Received 

DWLEDGMENT 
from 

OF 

MONEY  RECEIVED 
191 

.  . .  .  Dollars 

Payment 

for 

100 

$ 

FOR 

THE  WESSEX 

COMPANY 

Form  63.    Acknowledgment  of  Money.     Size,  Sl/2  X  3J/2. 


Aside  from  this,  the  giving  of  temporary  receipts  for  any 
payment  whatever  should  be  absolutely  prohibited.  If  an 
employee  collects  charges  for  lighting  or  merchandise,  he 
must  in  all  cases  make  out  the  receipt  on  the  proper  bill  form 
and  in  no  other  way.  If  the  consumer  loses  the  bill  that  was 
issued,  as  often  happens,  or  if  a  consumer  upon  discontinuing 
the  company's   service   pays   the   man   who   disconnects   the 


152 


"OUTSIDE"   ACCOUNTING   WORK 


meter  during  the  month,  the  regular  bills  should  be  made  out 
and  properly  receipted. 

Cancellation   of  Charges  Against  Consumers 

It  will  sometimes  be  necessary  to  cancel  charges  against 
consumers  of  electric  light,  etc.  Generally  speaking,  the  only 
cancellation  that  should  be  made,  excepting  those  made  at  the 
end  of  the  fiscal  year  when  adjusting  the  yearly  accounts, 
should  be  in  case  of  erroneous  bills  or  return  of  materials  sold. 

It  occasionally  happens  that  a  manager  may  desire  to  allow 
reductions  in  a  charge  because  a  meter  test  has  proved  that 
the  meter  was  registering  fast  or  for  some  similar  reason.  In 
cases  of  this  kind  request  should  be  made  to  the  comptroller's 
office  by  the  cashier  during  the  month  the  error  was  discov- 
ered to  cancel  that  part  of  the  bill  which  was  in  excess.  The 
cashier  should  send  in  a  letter  approved  by  the  division  mana- 
ger, giving  all  details,  and  in  due  time  he  will  receive  instruc- 
tions regarding  cancellation  from  the  comptroller's  office. 
The  cancellation  should  be  made  on  his  books  in  the  proper 
month  as  directed.  All  other  accounts  must  be  held  open  until 
the  close  of  the  fiscal  year. 

At  the  close  of  the  year  request  will  be  made  by  the  comp- 
troller's office  for  a  list  of  uncollectible  accounts.  The  inten- 
tion of  this  list,  it  should  be  noted,  is  to  write  off  merely  such 
accounts  as  in  the  judgment  of  the  cashier  or  manager  are 
definitely  uncollectible,  and  not  those  which  are  merely 
doubtful. 

A  book  record  of  all  accounts  cancelled  must  be  kept  in 
the  offices.  The  cashier  should  consult  this  in  the  case  of  every 
prospective  customer,  unless  he  is  sure  that  the  applicant  has 
never  previously  been  carried  on  the  company's  books,  to 
ascertain  if  there  is  an  old  balance  due  which  was  at  one  time 
written  off.  Where  this  is  found  to  be  the  fact  service  must 
not  be  installed  until  the  old  balance  due  is  paid.    It  is  emi- 


AUXILIARY   OPERATIONS  ^3 

nently  desirable  to  secure  a  substantial  deposit  in  addition 
from  such  people  before  again  beginning  service  to  them. 

Refunds  to  Consumers 

If  a  consumer  who  is  still  using  the  service  overpays  his 
account,  the  amount  should  be  handled  on  the  regular  cash 
book  as  an  "interim"  and  credited  to  his  next  bill.  That  bill 
should  show  the  full  charge  and  the  overpayment  applied  in 
the  same  manner  as  a  part  payment.  This  credit  should  be 
shown  on  the  bill  presented  to  the  consumer  in  the  form  of  a 
clearly  intelligible  notation. 

Summary  Cash  Book 

If,  however,  a  consumer  overpays  his  account  after  service 
has  been  discontinued,  it  becomes  necessary  to  pay  him  back 
in  actual  cash;  and  this  refund  must  come  out  of  the  receipts. 
To  take  care  of  this  properly  a  small  cash  book  should  be  kept 
by  the  cashier.  It  should  be  noted  that  this  is  in  addition  to 
the  two  cash  books  kept  by  the  cashier  in  connection  with  the 
passenger  service. 

On  the  debit  side  the  receipts  should  be  recorded,  showing 
their  classification  in  the  same  manner  as  these  are  now  shown 
on  the  "Advice  to  the  Comptroller."  The  date  shown  must  be 
that  of  the  day  the  receipts  were  taken  in.  The  total  of  each 
day's  receipts,  of  course,  should  be  shown. 

On  the  credit  side  should  be  entered  the  date,  the  name  of 
the  bank,  and  the  amount  deposited  or  remitted  to  the  com- 
pany treasurer.  If  the  total  collections  of  any  day  are  not 
deposited,  the  balance  should  be  carried  forward  to  the  next 
day.  Both  sides  for  each  day  will  balance,  of  course,  and  red 
ink  lines  should  be  drawn  across  each  side  to  show  the  sepa- 
ration by  days. 

When  a  refund  has  to  be  made  to  a  consumer  in  cash  the 
amount  should  be  taken  out  of  the  receipts  of  the  day  follow- 


^4  "OUTSIDE"   ACCOUNTING   WORK 

ing  that  on  which  overpayment  is  discovered.  On  the  day  the 
cash  is  taken  out,  the  cashier  will  show  the  receipts  in  full  on 
the  debit  side  of  the  summary  cash  book  and  on  the  credit  side 
will  give  information  concerning  the  deposit  as  outlined  above, 
and  also  the  amount  of  the  refund,  with  a  notation  to  explain 
this  entry  fully.  If  this  is  done,  the  two  sides  of  the  cash 
book  will  then  balance  for  the  day. 

In  other  words,  the  debit  side  of  the  summary  cash  book 
must  always  show  everything  that  was  actually  received,  and 
the  credit  side  its  disposition. 

Returning  Overpayments 

If  the  consumer  can  readily  be  reached  he  should  be  paid 
in  cash  and  his  receipt  taken  on  a  blank  similar  to  Form  63. 
Otherwise  a  letter  should  be  written  to  him  explaining  the 
overpayment  and  enclosing  a  receipt  for  him  to  sign.  When 
the  signed  receipt  is  returned  the  money  should  be  taken  to  a 
bank  where  the  company  keeps  a  deposit  and  the  cashier's 
check  obtained  and  forwarded  to  the  consumer  with  a  letter. 
The  signed  receipts,  with  copies  of  all  correspondence  regard- 
ing them,  must  be  kept  in  the  local  office  so  that  they 
can  be  readily  found  at  any  time.  On  the  back  of  each  of 
them  a  notation  should  be  made  as  to  whether  payment  was 
made  by  cash,  or  by  cashier's  check.  If  by  the  latter,  the 
name  of  the  bank  should  be  given  also. 

The  amount  of  receipts  shown  on  Form  7  must  be  that  of 
the  receipts  actually  deposited.  Amounts  refunded  are  not 
included  on  this  form ;  such  "interims"  as  represent  amounts 
which  have  been  refunded  may  be  ignored. 

Since  the  above  covers  a  number  of  the  special  points  in 
connection  with  electric  lighting  it  seems  unnecessary  to  go 
into  any  further  details  here.  Other  special  activities  are  con- 
ducted on  similar  lines  and  this  book,  of  course,  is  primarily 
concerned  with  street  railway  accounting. 


AUXILIARY   OPERATIONS  jgg 

Parks  and  Other  Attractions 

Speaking  generally,  pleasure  parks  are  not  operated  with 
much  success  by  street  railways  at  the  present  time.  In  many 
cases  they  have  been  entirely  abandoned  and  in  many  others 
they  are  leased  outright  by  the  railway  company.  In  a  few 
cases  privileges  in  and  around  the  parks  are  let  by  the  street 
railroad  to  various  concessionaires. 

Where  parks  are  operated  for  the  particular  purpose  of 
attracting  traffic,  the  accounts  are  handled  under  the  Inter- 
state Commerce  Commission's  ruling  entirely  through  "Oper- 
ating Expenses,  Account  81,  Parks,  Resorts  and  Attractions." 
But  where  such  parks  and  attractions  are  carried  on  as  a  mat- 
ter of  making  money  rather  than  to  induce  traffic  on  the  line 
of  the  carrier  they  are  regarded  as  coming  within  the  defini- 
tion of  an  auxiliary  operation. 

Some  street  railways  maintain  in  addition  other  property, 
athletic  fields,  for  instance,  where  games  and  entertainments 
are  conducted  and  fire-work  displays,  etc.,  are  given.  It  is 
extremely  difficult  to  tell  whether  such  enterprises  are  of  bene- 
fit to  the  road  or  not.  There  is  always  expense  connected  with 
them  and  as  there  is  a  certain  amount  of  traffic  on  the  road 
which  the  company  would  get  anyway,  it  is  difficult  to  tell 
how  much  money  the  special  attraction  brings  in.  Hence  it 
is  difficult  to  outline  any  particular  system  of  accounting.  It 
has  been  the  writer's  experience  that  a  brief  check  of  the  traf- 
fic made  by  the  inspectors  is  about  the  best  record  that  can  be 
obtained  for  the  purpose. 

If  the  park  is  owned  and  operated  by  the  company,  it  is 
a  simple  matter  to  keep  "Account  No.  81,  Parks,  Resorts,  and 
Attractions"  subdivided  so  that  all  charges  or  credits  can  be 
applied  to  the  proper  subdivision.  A  book  for  the  purpose 
of  detail  records  (Form  138)  is  illustrated  in  Chapter  XXI. 
(See  also  Chapter  XVIII.)  This  may  be  footed  at  the  end 
of  the  month  and  proved  up  with  the  regular  expense  ledger, 


156 


"OUTSIDE"   ACCOUNTING   WORK 


"Account  81,  Parks,  Resorts,  and  Attractions."  This  is  a  very 
simple  method  of  accounting  for  parks  which  are  owned  and 
operated  entirely  by  the  company.  A  similar  record  may  be 
kept  for  athletic  fields  or  other  special  features  which  are 
handled  by  a  street  railway  company.  Where  a  street  railway 
company  leases  the  entire  park,  or  other  attraction,  no  special 
records  are  necessary,  because  "Account  No.  81,  Parks, 
Resorts,  and  Attractions"  will  show  all  details,  but  on  the 
other  hand  where  a  company  leases  a  portion  of  the  privileges 
and  operates  another  portion,  such  as  perhaps  a  restaurant  or 
bath  privileges,  or  something  of  the  kind,  the  accounting 
methods  must  be  a  little  more  strict.  Proper  systems  of  inter- 
nal checks  should  be  used  so  that  the  company  will  not  be 
defrauded  of  a  portion  of  its  earnings. 

In  the  matter  of  construction  accounts  for  the  purchasing 
or  building  of  parks  very  little  can  be  said,  as  the  Inter- 
state Commerce  Commission's  system  of  accounts  provides 
"Account  526,  Park  and  Resort  Property"  with  the  following 
explanation — "This  account  shall  include  the  cost  of  amuse- 
ment parks  and  resorts ;  including  the  excess  cost  of  improved 
park  and  resort  property  over  the  original  cost  of  such  prop- 
erty retired  or  removed  and  replaced.  (Note: — The  cost  of 
land  used  for  such  purposes  shall  be  charged  to  Account  503, 
'Other  Land  Used  in  Electric  Railway  Operations.')" 

Of  course,  if  the  railway  company  is  not  under  the  juris- 
diction of  the  Interstate  Commerce  Commission,  or  following 
that  commission's  uniform  system  of  accounts  for  electric  rail- 
ways, it  can  subdivide  its  construction  and  equipment  accounts 
for  park  properties  in  accordance  with  ideas  of  the  officials  in 
charge.  This  subdivision  might  be  somewhat  as  follows: 
Organization,  Land,  Buildings,  Equipment,  Interest,  Insur- 
ance, and  Miscellaneous.  In  the  matter  of  records  for  other 
attractions,  such  records  would  depend  entirely  upon  local 
conditions  and  the  nature  and  size  of  the  attractions. 


CHAPTER    X 

THE    PAY-ROLLS— PREPARATION 

Different  Classes  of  Employees 

Labor  is  one  of  the  two  main  elements  of  cost  with  a  street 
railway  company.  An  important  part  of  the  work  of  the 
accounting  department  has  to  do  with  supervising  the  prep- 
aration and  checking  of  pay-rolls. 

The  employees  of  a  street  railway  company  include  usu- 
ally those  in  the  transportation  service,  chiefly  conductors  and 
motormen;  those  working  on  the  track;  on  the  line;  in  the 
power-houses ;  in  the  storerooms ;  and  in  the  local  and  general 
offices.  If  a  road  maintains  an  express  and  freight  service 
and  operates  auxiliary  enterprises  such  as  amusement  parks, 
the  employees  are  still  more  varied  in  character. 

More  than  half  of  the  total  number  are  conductors  and 
motormen,  the  conditions  of  whose  employment  are  different 
from  those  in  any  other  business.  Special  methods  and 
devices  have  been  developed  accordingly  in  connection  with 
the  pay-rolls. 

Pay-Roll  Procedure 

The  procedure  may  be  summarized  as  follows:  With  the 
exception  of  the  comparatively  few  employees  in  the  general 
offices,  pay-rolls  for  all  employees  are  made  up  by  divisions 
in  the  offices  of  the  division  managers.  Heads  of  departments 
and  clerks  in  the  general  offices  are  paid  by  check,  but  the 
method  of  pay  envelopes  is  used  for  other  employees.     The 

157 


I58  "OUTSIDE"  ACCOUNTING  WORK 

pay-rolls  are  first  sent  to  the  comptroller's  office  to  be  exam- 
ined ;  then  are  returned  to  the  division  offices,  where  the  pay- 
ment is  made  by  the  division  cashiers ;  and  finally  they  are  sent 
back  to  the  comptroller's  office  for  final  checking  and  filing. 

Except  in  the  case  of  conductors  and  motormen,  the  proc- 
ess is  very  simple.  All  employees  of  the  road  are  grouped 
according  to  a  classification  designed  to  cover  all  classes  of 
labor  on  a  street  railway  system,  which  is  made  up  in  the 
comptroller's  office  and  furnished  to  the  division  offices. 
Each  class  is  given  a  certain  number  so  arranged  as  not  to 
conflict  with  the  accounting  numbers  under  which  their  wages 
are  distributed  on  the  pay-rolls  by  departments. 

The  following  suggestions  should  be  observed  by  the  divi- 
sion offices. 

Classification  by  Occupation 

When  a  man  is  engaged  he  should  be  given  a  definite 
occupation  from  week  to  week  until  he  is  promoted  or  trans- 
ferred to  another  department.  He  should  not  be  designated 
on  the  pay-roll  merely  as  a  "helper"  but  as  a  "machinist's 
helper,"  "painter's  helper,"  etc.  If  he  performs  duties  outside 
his  regular  occupation  the  pay-roll  distribution  should  show 
the  time  devoted  to  such  irregular  duties. 

The  entire  amount  of  money  due  any  one  man  for  the 
week  should  appear  in  one  place  only  and  as  one  amount  on 
the  roll,  regardless  of  the  kinds  of  work  he  may  have  been 
doing.  His  name  should  not  appear  more  than  once  on  the 
roll.  Thus  every  name  on  the  pay-roll  will  represent  a  differ- 
ent man  and  by  counting  the  names  the  comptroller  can  imme- 
diately tell  how  many  men  are  employed. 

When  a  man  quits  one  job  to  accept  another  in  a  different 
department  his  name  should,  of  course,  be  transferred  to  the 
pay-roll  of  the  new  department.  It  is  desirable  that  such 
transfer  be  made  at  the  beginning  of  the  pay-roll  week. 


PAY-ROLLS— PREPARATION 


159 


Approving  Pay-Rolls 

As  the  pay-rolls  are  one  of  the  chief  avenues  through 
which  the  company's  money  is  expended,  precaution  should  be 
taken  not  only  to  have  them  correct  but  also  to  have  them  duly 
approved  by  the  officials  properly  responsible.  Pay-rolls 
should  be  approved  by  the  following: 


The  time  clerk  preparing  the  roll 

The  foreman 

The  division  manager 

The  comptroller 

The  vice-president  or  president 


The  first  approval  is  self-explanatory.  Regarding  the  sec- 
ond approval,  if  the  roll  contains  the  names  of  men  who  work 
on  the  track,  it  should  be  approved  by  the  roadmaster;  or  if 
there  is  no  roadmaster  on  the  division,  by  the  chief  foreman 
or  the  man  directly  responsible  for  the  time.  If  it  is  a  shop 
pay-roll,  it  should  bear  the  approval  of  the  master  mechanic. 
If  it  is  a  conductors'  and  motormen's  roll  the  signature  of  the 
chief  inspector,  or  the  man  directly  responsible  for  the  time  of 
the  conductors  and  motormen,  should  appear  on  the  roll — 
and  so  on  throughout  the  pay-rolls.  It  will  be  necessary  to 
secure  the  signatures  of  the  heads  of  sections  on  the  particular 
rolls  coming  under  their  jurisdiction. 

The  third  approval  should  be  that  of  the  division  manager, 
as  generally  responsible  for  all  division  work. 

Should  any  necessary  approvals  not  be  secured  before  the 
time  to  send  the  pay-roll  sheets  to  the  comptroller's  office,  the 
sheets  should  nevertheless  be  sent  in.  Then,  as  soon  as  they 
are  returned  to  the  division  and  the  cashier  has  them  to  pay 
off  with,  arrangements  should  be  made  for  the  officials  con- 
cerned to  sign  the  pay-roll  sheets  at  once  so  that  the  cashier 
can  return  the  receipted  pay-roll  to  the  comptroller's  office. 


i6o 


'OUTSIDE"   ACCOUNTING   WORK 




THE  WESSEX  COMPANY 
For  Employees  Other  Than  Conductors  and  Motormen 
DAILY  TIME  CARD 

Date   191..          Name 

Description  of  Work 

Hours 

Amount 

Account 
Number 

1 

1 

Form  64.     Daily  Time  Card.     Size,  8l/2    X   4%. 


THE  WESSEX  COMPANY 

NO. 

NAME 

DAY 

MORN 
IN 

NOON 
OUT 

NOON 
IN 

NIGHT 
OUT 

EXTRA 
IN 

EXTRA 
OUT 

I0TAL 

TOTAI    TIMF 

BATF 

TOTAL  WAGES  FOR  WEEK 

THE  WESSEX  COMPANY 

NIGHT  SHIFT 

NO 
NAME 

DAY 

OUT 

IN 

LUNCH 

OUT 

IN 

SAT. 

SUN 

MON. 

TUE 

WED 

THUP. 

FRI. 

TOTAL  TIM 

F 

RATF 
TOTAL  WAC 

FS 

Form  65.     Time  Clock  Ticket— Shops.     Size,  3^  X  5^. 
Form  66.     Time  Clock  Ticket— Shops   (Night  Shift).     Size,  3l/2 
x  5lA-  (On  the  reverse  are  the  words  "This  Side  Front,"  "No.," 
"Name.") 


PAY-ROLLS— PREPARATION 


161 


Computing  Time 

The  first  step  in  preparing  pay-rolls  is  to  compute  the  time 
which  each  employee  has  worked  each  week. 

The  men  in  the  various  departments — conductors  and 
motormen,  those  in  the  carbarns  and  shops,  track  employees, 
linesmen,  and  those  in  the  offices  —  fill  out  daily  time  slips 
which  they  turn  in  to  division  timekeepers  attached  to  their 
department.  The  following  forms  are  used  for  the  various 
departments : 

Form  64,  the  daily  time  card  used  for  line  employees 
and  shop  employees. 

Form  65,  the  time  clock  ticket  used  by  shop  employees. 

Form  66,  the  time  clock  ticket  for  shop  employees  who 
work  at  night. 

Form  67,  the  daily  check  list  used  for  track  and  road- 
way employees. 


THE  WES5EX  COMPANY 
DIVISION 
DAILY  CHECK  LIST 
iqi 

NAME 

felt 

Total 
Time 

Total 

Amount 

Tunc 

Amt. 

Time 

Amt 

Time 

Amt. 

Time 

Amt 

Time 

Amt 

Time 

Amt 

ENTERED 

APPROVED 

(Sig 

ncd 

}■ 

Form  67.    Daily  Check  List — Track  Employees.    Size,  8^2  X  11. 


1 62 


'OUTSIDE"   ACCOUNTING   WORK 


Form  68,  used  by  transportation  employees  other  than 
conductors  and  motormen,  although  some  of  these 
names  appear  on  the  conductors'  and  motormen's 
pay-rolls.  The  report  is  given  to  the  man  in  charge 
of  these  miscellaneous  employees,  whose  duty  it  is  to 
act  as  timekeeper  and  prepare  pay-rolls  of  the  men 
in  this  department. 


THE  WESSEX  COMPANY 


DAILY  TIME  REPORT 
(Inspectors,    Chief   Cond.    Chief   Motor.   Starters,   Switchmen,   etc. 
Date 191 . . 


Name 

Occupation No. 

On  Duty   at 


From m.    From. 

To m.  To.... 


.m.    From. 
.  m.   To.  . .  . 


Regular     ( Hrs. 

Time         ( Mins. 


Over 
Time 


..Hrs. 
Mins. 


(Total. 
(Time. 


..Hrs. 
Mins. 


TIME  DISTRIBUTED  AS  FOLLOWS: 


Register  Inspection. 
Service  Inspection... 
Starter  on  Street. . . . 

Starter  at  Barn 

nstructing    Cond 


.Hrs.     Switchman 

.Hrs.  jAcct.    Snow   and    Ice. 

Hrs.  HSanding     Track 

Hrs.     Checking    Traffic 

Hrs.     Instructing     Motor.... 


Hrs. 
Hrs. 
Hrs. 
Hrs. 
Hrs. 


• 


APPROVED 


Form  68.     Time  Report — Superior  Employees.     Size,  $y2  X  8^. 


PAY-ROLLS— PREPARATION 


163 


Conductors'  and  Motormen's  Time 

For  conductors  and  motormen,  computing  "time"  consti- 
tutes a  much  more  complex  matter. 

These  men  are  paid  at  various  rates,  by  hours,  length  of 
run,  etc.,  the  necessities  of  service  frequently  requiring  over- 
time and  extra  pay.  The  work  of  each  man  and  the  amount 
of  his  pay  will  usually  vary  somewhat  from  week  to  week, 
and  what  amounts  to  special  calculation  is  accordingly  neces- 
sary in  the  case  of  every  man  of  these  two  classes.  For  these 
men  the  following  time  slips  are  provided:  Form  69,  "Motor- 
men's  Time  Slip"  and  for  conductors  a  similar  slip  with  the 
word  "Conductor"  on  it. 


THE  WESSEX  COMPANY 

r 

191.. 

REPORT   OF  TIME 

Date 

Regular 
Time 

Over 
Time 

Total 
Time 

hrs. 

<<          <l 

,, 

« 

<<          II 

« 

.< 

•  <          •• 

,, 

■< 

«          .. 

,, 

., 

Total 

hrs. 

No 

Form  69.     Motorman's  Time  Slip.     Size,  4^   X  $l/2. 


These  time  slips  are  put  into  a  specially  prepared  box 
located  near  the  receiver  or  near  the  safe  where  the  conduc- 
tors turn  in  their  money.  Then  the  night  barn  foreman  or 
one  of  his  assistants  takes  the  time  slips  to  the  office  where 
the  timekeeper  is  located,  provided  the  office  is  open  all  night. 


164 


"OUTSIDE"   ACCOUNTING   WORK 


If  it  is  not,  they  are  taken  in  the  morning  to  the  division  time- 
keeper, and  the  time  so  reported  is  checked  against  the  regular 
schedule  of  rates  and  hours,  provided  the  motormen  and  con- 
ductors are  on  a  regular  run  with  a  fixed  schedule. 

Extra  Time 

When  these  men  work  overtime  because  of  running  extra 
cars  or  when  they  are  allowed  extra  time  on  account  of  wait- 
ing orders,  etc.,  the  number  of  hours  is  marked  on  their  time 
slip  and  this  overtime  is  checked  upon  Form  70  or  Form  71. 

These  two  forms  are  prepared  by  the  barn  foreman  or 
superintendent,  approved  by  him,  and  sent  to  the  office  of  the 
division  manager  daily.  They  are  turned  over  to  the  time 
clerk,  who  uses  them  as  his  authority,  after  checking  against 
them  the  men's  time  slips,  for  entering  the  time  of  the  men 
upon  the  pay-roll  sheet. 


THE  WESSEX  COMPANY 
REPORT  OF  EXTRA  CARS  RUN 

Car 

No. 

Con- 
ductor 

No. 

Motor- 
man 

No. 

Desti- 
nation 

Car        |     Car 
Taken  at  ]  Left  at 

1  ime 
Allowed 

1 

| 

1 

!'                1' 

1 

Total  Time  Allowed, 

Date 

Approved 

Superintendent.                                  Starter. 

Form  70.     Report  of  Extra  Cars  Run.     Size,  8J/2   X   14. 


PAY-ROLLS— PREPARATION 


l65 


THE  WESSEX  COMPANY 

Miscellaneous  Time  Allowed 
Location  of  Car  Barn 


1       1    r      r     i     1 

iii          1 

Suo't.                                               Starter 

Form  71.     Miscellaneous  Time  Allowed.     Size,  8^2   X   15^. 


Time  of  Express  and  Freight  Motormen 

Form  71  is  used  also  in  keeping  track  of  the  work  of 
motormen  who  run  the  express  and  freight  department  cars. 
These  men,  since  they  are  on  the  same  pay-roll  as  those 
employed  in  the  passenger  service,  use  the  same  kind  of  time 
slips  as  the  passenger  motormen  and  turn  them  in  each  day 
in  the  regular  way  to  the  local  timekeeper.  They  also  prepare 
day  cards,  using  Form  72.  This  form  is  turned  in  to  the  local 
express  agent,  who  credits  each  express  motorman  on  Form 
71  with  the  number  of  hours  he  has  actually  worked  during 
the  day.  For  instance,  if  a  motorman  starts  from  one  divi- 
sion, runs  to  one  or  more  other  divisions,  and  returns  at  night 
to  the  first  division,  the  record  given  on  this  Form  72  will 
show  just  how  many  hours  the  motorman  has  put  in  during 
the  day. 


i66 


'OUTSIDE"   ACCOUNTING  WORK 


T— 1 

ui 

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o 

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—    £» 
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XI  XI 

^£ 

si 

| 

i COMPANY 
EIGHT  DAY  CAE 

Da 

Mileage 
of  Freight 
Car* 

J 

Number 

of  Freight 

Car 

J 

<u"  re 

z-S 

| 

X 
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PAY-ROLLS— PREPARATION 


167 


Motormen  who  are  assigned  regularly  to  this  kind  of  work 
do  not  as  a  rule  receive  overtime  until  they  have  worked 
eleven  hours  per  day.  In  cases  where  it  is  necessary  to  use 
other  motormen  who  have  been  engaged  in  the  passenger  ser- 
vice to  run  express  and  freight  cars,  they  are  usually  allowed 
overtime  after  they  have  completed  the  same  number  of  hours 
as  they  would  have  put  in  had  they  worked  on  their  regular 
run. 

The  express  agents  forward  these  reports  of  express 
motormen's  time  on  Form  71  to  the  office  of  the  division  man- 
ager, where  the  time  clerk  uses  them  as  his  authority  to  allow 
the  men  time  on  their  various  runs. 

Time  Allowed  for  Other  Service 

There  are  various  kinds  of  service  other  than  the  regular 
passenger  and  express  service,  such  as  switching  and  changing 


THE  WESSEX  COMPANY 
REPORT  OF  NON-REVENUE  CAR  MILEAGE 

Above    Includes   Work  or   Line   Cars,   Sweepers,   Snow-Plows,   Salt 
an6    Sand    Cars,   Wreckers    or   Other   Cars   not    Engaged    in    Pas- 
senger or  Express  and  Freight  Operations. 

Starting  Point 

Time    Destination 

Time 

Mileage 
f     see      \ 
V  footnote/ 

State  Full  Particulars  of 

Work  Engaged  upon, 

and'KInd  of  Material 

Carted,  Etc. 

No.  Hours 

On  Each 

Job 

| 

1 

f s ">- — • *- — ^- — ^-—^- — \~^^~-^—^-^*— — •*- — ' — \^-^» v— -^-      < 

I          | 

Show  Car  Number  Below 

Time 

Mileage 

WorR  Car  Used 
on.  Authorization 

Authorization  No. 
or  Name 

Time 

Mileage 

Car  No. 
"Motor" 

Car  "No. 
Non-Motor" 

From 

To 

From 

To 

' 

" 

r 

No Motorman 

Date    . 
NOTE- 

-Cc 

nduc 

tor 

Must 



191     .       I 
Not  Write 

VJO. 

In 

This  Colum 

n. 

C 

:>n 

ductor 

Form  73.    Non-Revenue  Car  Mileage.     Size,  Sl/2  X  8. 


1 68 


"OUTSIDE"   ACCOUNTING   WORK 


cars,  wait  orders,  etc.,  for  which  the  barn  foreman  may  wish 
to  allow  time  to  motormen  or  conductors.  Men  employed  in 
such  work  fill  out  for  the  barn  foreman  Form  73.  The  barn 
foreman  incorporates  this  information  in  his  own  daily  report 
on  Form  71.  The  occasions  calling  for  a  report  of  this  kind 
are  in  the  aggregate  very  numerous. 

Occasionally  a  man  on  a  regular  run  does  not  receive  his 
relief  at  noon  as  he  should,  or  has  to  make  an  extra  trip  or 
two.  In  that  case  the  time  clerk  will  consult  the  conductor's 
day  card  (Form  1  or  2)  before  allowing  him  the  extra  num- 
ber of  hours  he  should  receive.  This  furnishes  a  double 
check  on  the  motormen  and  the  conductors  inasmuch  as  the 
conductor  prepares  the  report. 


THE  WESSEX  COMPANY 
ADJUSTMENT  OF  TIME 

Name                         No Rate 

19 

CLAIMS 

GIVEN 

Date 

Remarks 

Reg. 

Over 

Remarks 

Reg. 

Over 

Total                                                      Total 

Adc 

Deduct 

Approved 

Tim<» 

Clerk 

Form  74.    Adjustment  of  Time.    Size,  7J4  X  7. 


PAY-ROLLS— PREPARATION  T6o, 

Adjustment  of  Disputed  Time 

Form  74  is  used  by  the  timekeeper  when  men  are  found 
short  in  their  pay  or  when  they  complain  of  an  error  in  their 
time.  As  the  timekeeper  cannot  allow  them  any  further 
wages  on  the  records  that  he  has,  he  makes  out  this  form  and 
hands  it  to  the  conductor  or  motorman,  who  goes  to  the  barn 
and  certifies  his  claim.  In  case  the  man  is  allowed  extra  time 
the  barn  foreman  or  superintendent  will  O.  K.  the  slip  and 
return  it  to  the  timekeeper  to  be  included  in  the  next  week's 
pay-roll. 

Varieties  of  Pay-Rolls 

In  making  out  the  pay-rolls  for  the  various  departments 
several  different  forms  are  used,  as  follows: 

Form  75,  "Weekly  Pay-Roil  Sheet,"  used  for  office 
employees,  conductors,  motormen,  and  miscellaneous 
employees  in  the  transportation  department,  and 
other  employees  who  are  paid  a  weekly  rate. 

Form  76,  a  monthly  or  weekly  sheet  used  for  officers  or 
heads  of  departments,  ordinarily  in  the  general  office 
only. 

Forms  yy  and  78,  used  for  conductors  and  motormen  in 
addition  to  the  general  form  75. 

It  has  been  pointed  out  that  keeping  the  time  of  conductors 
and  motormen  is  a  complicated  matter,  inasmuch  as  the  hours 
of  every  man  may  vary  somewhat  from  week  to  week.  It 
might  be  remarked  here  that  whereas  the  instructions  issued 
to  timekeepers  in  connection  with  shop  employees,  linesmen, 
trackmen,  etc.,  can  be  given  very  briefly,  those  issued  in  con- 
nection with  conductors  and  motormen  might  fill  as  many  as 
a  dozen  pages. 

When  detailed  records  by  the  day  and  hour  are  required, 
these  may  be  given  on  Forms  //  and  78. 


170 


"OUTSIDE"  ACCOUNTING   WORK 


O 
1 


5  s 


I    £ 


St 


§    I 


s 

On 

&"§' 

-c  0 

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t>. 

M 

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0 

5  0 

Uh 

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I  S  3 

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If  i 

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uS% 

15  25  £ 

=£&'■«= 

1*1 

■5*; 

ts  S 

PAY-ROLLS— PREPARATION 


171 


ai  1r.1T  Nn 

REGISTERED  in 

Ift 

PAY-ROLL  FOR  OFFICERS  AND  HEADS  OF  DEPARTMENTS 
THE  WESSEX  COMPANY 

To  SUNDRY  PERSONS,  Dr 

Fnr  .Vrvir.M  rpnrirrert  Hi  iring  thf>  Mnn+h  nf       _                                          \a 

NAME 

POSITION 

AMOUNT 
MONTHLY  PAY 

PAID  BY  CHECK 

Name  of  Bank 

No. 

' 

II 

I  hereby  certify  to  have  paid  to  the  above  named  persons  the  ampunts  set  opposite  their  names  re- 
spectively. 

Treasurer 

APPROVED 

EXAMINED  AND  REGISTERED 

AUDITED  FOR  PAYMENT 

Comptroller 

Vice-President. 

-1 

D 

0 

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TO 

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5> 

», 

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1  Reverse  side  of"  above  form  1 

(- 

s 

Form  76.    Pay-Roll— Officers  (face  and  reverse).    Size,  ST/2  X  14. 


172 


"OUTSIDE"   ACCOUNTING   WORK 


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PAY-ROLLS— PREPARATION 


173 


174 


"OUTSIDE"   ACCOUNTING   WORK 


Approval  of  Time  Slips  for  Outside  Work 

The  following  points  should  be  observed  by  the  division 
manager's  time  clerk. 

When  employees  belonging  to  one  department  do  work 
for  another  they  should  prepare  a  time  slip  showing  what 
work  they  do  and  the  amount  of  time  spent  upon  it  and  hand 
it  to  the  head  of  the  department  for  which  the  special  work 
was  done.  He  will  approve  the  time  slip,  indicate  the  amount 
chargeable  and  the  rate  of  pay,  if  different  from  the  man's 
usual  rate,  and  forward  the  slip  to  the  timekeeper  of  the 
department  to  which  the  man  belongs.  The  department  time- 
keeper will  enter  the  time  with  the  rate,  and  charge  the  time 
to  the  proper  account  as  shown  on  the  time  slip. 

When  the  rate  of  pay  is  different  from  the  usual  rate  it 
can  be  entered  on  the  line  provided  for  overtime,  or  if  this  is 
already  filled,  between  the  lines.  The  total  amount  of  time 
worked  at  each  rate  should  be  added  and  carried  into  the  total 
column.  The  rate  should  be  shown  and  the  amount  of  money 
due  at  that  rate  entered  in  the  column  "amount."  The  total 
amount  due  each  man  should  be  carried  out  into  the  column 
"Total  Amount." 

To  illustrate,  if  a  trackman  is  used  for  a  few  hours  as  a 
helper  in  the  shop,  his  time  for  that  work  will  be  approved  by 
the  shop  foreman  and  sent  to  the  track  department  to  be 
entered  on  the  track  department  pay-roll,  and  so  on. 

When  a  conductor  or  motorman  is  used  for  other  work 
the  time  should  be  handled  as  follows : 

He  should  prepare  a  time  slip  in  the  usual  way  on  Form 
69  or  the  similar  form  for  conductors  and  turn  it  over  to  the 
head  of  the  department  for  which  the  work  was  done.  That 
department  must  approve  the  slip  and  forward  it  to  the  time- 
keeper of  the  conductors  and  motormen.  It  also  prepares  a 
report  of  such  time  allowed  on  Form  73  which  should  show 
the  conductor's  or  motorman's  name,  time  on  duty  and  off 


PAY-ROLLS— PREPARATION 


175 


duty,  with  a  description  of  the  work  done.  Time  of  this  kind 
refers  principally  to  operating  work  cars  for  other  depart- 
ments. It  should  be  grouped  or  summarized  as  far  as  possible 
according  to  the  account  to  be  charged.  It  may  be  entered  on 
the  conductors'  or  motormen's  pay-roll. 

Weekly  Wage  Table 

The  methods  in  vogue  for  determining  the  wage  table  for 
employees  whose  salaries  are  on  a  yearly  or  monthly  basis  but 
who  are  paid  on  the  weekly  roll  are  not  at  all  uniform.  A 
man  whose  salary  is  $1500  a  year  is  placed  on  the  weekly  roll 
at  $28.85  on  some  properties  and  $28.80,  which  is  correct,  on 
other  properties.  The  following  table  of  wages  showing  the 
daily  and  weekly  equivalent  for  monthly  rates  of  pay  will 
assist  all  accountants  in  this  connection. 


Daily   and   Weekly   Equivalents   of   Monthly   Rates 

of  Pay 


Month 

1  Day 

2  Days 

3  Days 

4  Days 

5  Days 

6  Days 

Week 

$15.00 

$.50 

$1.00 

$1.50 

$1-95 

$2.45 

$2-95 

$3-50 

16.00 

•55 

1.05 

1.60 

2.10 

2.65 

3-15 

3-70 

17.00 

•55 

1. 10 

1.70 

2.25 

2.80 

3-35 

3-95 

18.00 

.60 

1.20 

1. So 

2-35 

2.95 

3-55 

4-15 

20.00 

•65 

1.30 

1.95 

2.65 

3-30 

3-95 

4-65 

21.00 

•70 

1.40 

2.05 

2-75 

345 

4-15 

4-85 

22.00 

.70 

145 

2.15 

2.90 

3-6o 

4-35 

5-10 

22.50 

•75 

1.50 

2.20 

2-95 

3-70 

445 

5-20 

23.00 

•75 

1.50 

2.25 

3.00 

3-8o 

455 

530 

24.00 

.80 

1. 60 

2-35 

3-15 

3-95 

4-75 

5-55 

25.00 

.80 

1.65 

2-45 

3-30 

4.10 

4-95 

5-So 

26.00 

•85 

1.70 

2-55 

3-40 

4-25 

5-15 

6.00 

29.00 

•95 

1. 00 

2.85 

3.8o 

4-75 

5-70 

6.70 

30.00 

1. 00 

1-95 

2-95 

3-95 

4-95 

5-90 

6.95 

32.50 

1.05 

2.15 

3.20 

4-25 

5-35 

6.40 

7-50 

34-00 

1. 10 

2.25 

3-35 

445 

560 

6.70 

7.85 

35-00 

1.15 

2.30 

345 

4.60 

5-75 

6.90 

8.10 

36.00 

1.20 

2-35 

3-55 

4-75 

5-90 

7.10 

8.30 

37.00 

1.20 

2-45 

3-65 

4-85 

6.10 

7-30 

8-55 

^6  "OUTSIDE"   ACCOUNTING  WORK 

Equivalents  of  Monthly  Rates — Continued 


Month 

1  Day 

2  Days 

3  Days 

4  Days 

5  Days 

6  Days 

Week 

37-50 

1-25 

2-45 

3-70 

4-95 

6.15 

7.40 

8.65 

38.00 

1-25 

2.50 

3-75 

5.00 

6.25 

7.50 

8-75 

3900 

1.30 

2-55 

3.85 

5-15 

6.40 

7.70 

9.00 

40.00 

1.30 

2.65 

3-95 

5-25 

6.60 

7.90 

9-25 

42.00 

1.40 

2-75 

4-T5 

5-5o 

6.00 

8.30 

970 

42.50 

1.40 

2.80 

4.20 

5-6o 

7.00 

8.40 

9.80 

43-00 

1.40 

2.85 

4-25 

5-65 

7-05 

8.50 

9.90 

45-00 

1.50 

2.95 

4-45 

5-90 

7-40 

8.90 

10.40 

48.00 

1.60 

3-15 

4-75 

6.30 

7.90 

9-45 

11. 10 

50.00 

1.65 

3-30 

4-95 

6.60 

8.20 

9-85 

H-55 

55-00 

1.80 

3-6o 

540 

7-25 

9-05 

10.85 

12.70 

57.00 

1.85 

3-75 

5-6o 

7-50 

9-35 

11.25 

13-15 

58.00 

1.90 

3-8o 

570 

7-65 

9-55 

H-45 

13.35 

60.00 

1-95 

3-95 

5-90 

7.90 

9-85 

n.85 

13.85 

62.50 

2.05 

4.10 

6.15 

8.20 

10.25 

12.35 

14.40 

65.00 

2-15 

4-25 

6.40 

8-55 

10.70 

12.80 

1500 

70.00 

2.30 

4.60 

6.90 

9.20 

11.50 

1380 

16.15 

72.00 

2-35 

4-70 

7.10 

9-45 

11.85 

14.20 

16.60 

72.50 

2.40 

4-75 

7-15 

9-55 

11.90 

14-30 

16.70 

75-00 

2-45 

4-95 

7.40 

9.85 

12.35 

14.80 

17-30 

80.00 

2.65 

5-25 

7.90 

10.50 

13-15 

1580 

18.45 

85.00 

2.80 

5-00 

8.40 

11.20 

13-95 

1675 

19.60 

90.00 

2-95 

5-90 

8.90 

n.85 

14.80 

17-75 

20.75 

95-00 

3.10 

6.25 

9-35 

12.50 

1500 

18.75 

21.90 

100.00 

3-30 

6.60 

9-85 

13-15 

16.45 

1975 

23-05 

105.00 

3-45 

6.90 

10.35 

13-80 

17-25 

20.70 

24.20 

1 10.00 

3.60 

7-25 

10.S5 

14-45 

18.10 

21.70 

25-35 

115.00 

3-8o 

7-55 

11-35 

i5-io 

18.90 

22.70 

26.50 

120.00 

3-95 

7.90 

n.85 

1580 

19-75 

2365 

27-55 

125.00 

4.10 

8.20 

12.30 

16.45 

20.55 

24.65 

28.80 

13500 

4-45 

8.90 

13-30 

17-75' 

22.20 

26.65 

31.10 

140.00 

4.60 

9.20 

1380 

18.40 

23.00 

27.60 

32.25 

150.00 

4-95 

9-85 

14.80 

19-75 

24-65 

29.60 

34-55 

166.67 

5-50 

10.95 

16.45 

21.00 

27.40 

32.90 

38.40 

175.00 

5-75 

11.50 

17-25 

23.00 

28.75 

34-50 

4030 

200.00 

6.60 

13-15 

19-75 

26.30 

32.90 

39-45 

46.05 

208.33 

6.85 

13-70 

20.55 

27.40 

34-25 

41.10 

47-95 

210.00 

6.90 

1380 

20.70 

27.60 

34-50 

41.40 

48.35 

220.00 

7-25 

1445 

21.70 

28.95 

36.15 

43-40 

50.65 

225.00 

7.40 

14.80 

22.20 

29.60 

37.00 

44-40 

51-80 

PAY-ROLLS— PREPARATION 


177 


The  above  rates  are  made  to  end  in  o  or  5  in  all  cases.  If 
the  fraction  is  less  than  one-half  of  five  cents,  it  is  dropped, 
if  more  than  one-half,  five  cents  is  added;  but  in  some  of  the 
weekly  equivalents  that  rule  is  disregarded  so  that  the  amount 
of  52  payments  plus  the  pay  for  one  day  will  not  be  less  than 
the  yearly  amount  at  the  stated  rate  per  month. 

The  figures  $166.67  and  $208.33,  'm  the  "Month"  column 
above,  represent  of  course  a  yearly  salary  of  $2,000  and 
$2,500  respectively.  The  practice  is  to  use  these  figures  for 
eleven  months,  and  then  for  the  twelfth  month  draw  a  check 
for  an  amount  which  will  complete  the  even  $2,000  or  $2,500. 


CHAPTER    XI 

THE    PAY-ROLLS  —  SPECIAL    PROCEDURE   AND 

CHECKING 

Increases  and  Changes 

It  should  be  a  rule  of  any  company  that  no  increase  in 
rates  of  pay  and  no  addition  to  the  employees  should  be  made 
on  the  pay-rolls  without  proper  authority.  For  necessary 
changes  the  procedure  may  be  as  follows :  When  an  employee's 
rate  of  pay  is  to  be  increased  Form  79  is  used. 


THE  WESSEX  COMPANY 

Division   19 . . . 


Mr. 


Dear   Sir: — I    recommend    that    the    pay   of 

employed  as be  changed  from  $ per to  $ 

per to   take   effect 19 for   the   following  reasons: 


(Signature)    (Official  Title) 


Respectfully  referred  to  the  General   Manager,  with  recommenda- 
tion  that   the    increase    be    allowed. 


.19. 


The   Foregoing    Change    in    Pay   is   Authorized   to    Commence   with 

the  Pay-roll  for  Week  Ending 19. . . . 

19 


NOTE — This  form    is  to   be   attached   to  the   weekly    Pay-Roil   for 
the   Vice-President's   information. 

Form  79.     Increase  of  Pay.     Size,  7  X  6%. 
178 


PAY-ROLLS— SPECIAL   PROCEDURE 


179 


This  form  should  be  carefully  filled  out  by  the  official 
having  immediate  jurisdiction,  and  the  reasons  for  the  change 
clearly  stated.  When  approved  by  the  president  or  other 
authorized  officer,  it  should  be  attached  to  the  pay-roll  on 
which  it  is  made  effective  and  sent  to  the  comptroller's  office. 
No  change  should  be  made  without  proper  authority. 

When  Sliding  Scale  Is  in  Effect 

-Where  a  sliding  scale  of  wages  is  in  effect  a  question 
always  comes  up  as  to  when  a  change  should  be  made  to  the 
next  higher  rate.  The  following  plan  may  be  suggested:  After 
a  man  has  completed  his  first  year's  services  he  is  entitled  to 
an  increase  in  rate.  Conductors  and  motormen  who  are 
entitled  to  such  increase  by  reason  of  having  completed  an 
additional  year  of  service  on  a  Saturday  are  allowed  the  new 
rate  on  the  pay-roll  of  that  same  Saturday.  Conductors  and 
motormen  who  are  entitled  to  a  new  rate  on  a  Sunday,  Mon- 
day, or  Tuesday,  are  given  the  new  rate  from  the  preceding 
Saturday,  thereby  getting  the  benefit  of  the  two  or  three  days, 
as  the  case  may  be.  Conductors  or  motormen  who  are 
entitled  to  the  new  rate  on  Wednesday,  Thursday,  or  Friday 
will  be  given  the  new  rate  from  the  succeeding  Saturday. 
These  men  will  lose  the  benefit  of  the  one,  two,  or  three  days, 
as  the  case  may  be. 

In  other  words,  changes  in  the  rate  of  the  men  are  to  be 
made  effective  only  on  the  first  day  of  each  pay  week.  This 
plan  is  effective  only  when  the  pay-roll  week  ends  Friday 
night  and  the  new  pay-roll  week  begins  Saturday  morning. 

When  Force  Is  Increased 

When  increases  in  the  force  are  made  Form  80  is  used. 
The  division  and  date  are  filled  in,  and  all  required  information 
given  by  the  official  requesting  the  increase.  When  properly 
endorsed  by  other  officials  and  approved  by  the  president  or 


i8o 


"OUTSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
Division    


19. 


Mr. 


Dear  Sir: 

Authority  is  hereby  requested  to  increase  the  force  of  the 

, by  employing  the  persons  named 

(Department  or   Division) 

below  commencing  with  the  pay-roll  ending 19. . . 

for  the  following  reasons: 

Name  or  Number  of  Men           Occupation                        Rate  of  Pay 
$ per 


per. 
per. 


(Official    Title) 

Respectfully  referred  to  the with  recom 

mendation  that  this  increase  be  allowed  commencing  with 
the  pay-roll  week  ending 19. , 


19. 


(Date) 


(Name) 
(Official   Title) 


The  above  mentioned  increase  in  force  is  authorized  to 
take  effect  with  the  pay-roll  week  ending 19. . . . 

19 

Note  Instructions  on  the  Back  of  This  Sheet. 


Form  8o.     (a)  Increase  of  Force  (face).    Size,  7  X  gl/2. 


PAY-ROLLS— SPECIAL   PROCEDURE  1S1 


MEMORANDUM 


Roll                  Item  Name  Occupation       First  Appeared 

No No weekending 


INSTRUCTIONS 


1.  In  using  this  form,  particular  attention  should  be  given 
to  state  the  date  when  it  is  desired  to  have  the  increase  take 
effect,  and  if  the  increase  is  temporary  it  should  be  so  stated. 
When  the  form  is  attached  to  the  pay-roll,  a  memorandum  should 
be  made  on  the  back  of  form,  giving  the  number  of  the  roll, 
item,   and   the  date   of  the  pay-roll  week  the  name  first  appears  on. 

2.  In  emergency  cases  where  it  is  impracticable  to  attach 
the  form  to  the  roll  to  which  it  belongs,  a  memorandum  should 
accompany  the  roll  showing  the  number  of  men  employed,  oc- 
cupation and  rate,'  and  the  number  of  the  roll,  item,  and  date 
of  the  pay-roll  week  the  employee's  name  first  appeared  on; 
with  the  further  information  that  form  has  or  will  be  forwarded 
to  cover,   if  one  is  found  necessary. 

3.  When  this  form,  covering  emergency  cases,  is  received 
properly  approved,  it  should  then  be  sent  at  once  to  the  office  of 

the  Comptroller,   ,  after  noting  thereon  the  information  as 

called  for  by  Clause  1  in  above  instructions,   and  not  hold  form 
over  to  be  attached  to  rolls  of  following  week. 

4.  In  cases  where  authority  is  given  to  employ  a  certain 
number  of  men  and  they  are  not  all  put  on  during  any  one 
week,  the  form  should  be  attached  to  the  roll  containing  the 
names  of  men  hired,  together  with  the  date  of  the  pay-roll  week 
the  names  appeared  on. 

Whenever  further  increases  are  made  under  the  same  authority, 
a  memorandum  or  letter,  should  accompany  the  rolls  on  which 
the  names  appear,  giving  the  roll  number,  item  and  date  of  the 
pay-roll  week  the  names  first  appeared  on  and  refer  to  the  roll, 
by  date,  to  which  the  authority  (this  form)  is  attached.  In 
order  to  give  this  information  correctly,  time  clerks  should  keep 
a  memorandum  on  file  in  their  office  for  reference. 

5.  When  the  full  completion  of  men  has  been  hired,  the  fact 
should  be  so  stated. 


Form  8o.     (b)   Increase  of  Force   (reverse). 

other  authorized  official,  it  should  be  attached  to  the  pay-roll  on 
which  it  is  made  effective  and  sent  to  the  comptroller's  office. 
The  instructions  on  the  back  should  be  carefully  followed. 

Resignations  and  Promotions 

In  reporting  changes  in  the  pay-roll  which  did  not  involve 
either  an  increase  in  the  number  of  men  or  in  the  rates  of  pay 
Form  8 1  is  used. 

Suppose  John  Smith  is  employed  as  sub-station  operator 
or  blacksmith  at  $2.50  a  day,  and  John  Brown  as  assistant 


1 82 


"OUTSIDE"   ACCOUNTING   WORK 


■ 

THE  WESSEX  COMPANY 

NOTE — Report    all    changes    fro,m    previous    week's    roll    including 

promotions   or  changes  of   rates,   etc.,   on    account  of   filling 

vacancies. 

NAME 

OCCUPATION 

PARTICULARS 

Manager  or  Superintendent 


Foreman 


Form  81.     Change  of  Pay-Roil.     Size,  8  X  ioy2. 


operator  or  assistant  blacksmith  at  $2  a  day.  Smith  leaves 
the  service,  Brown  is  promoted  to  take  his  place,  and  a  new 
man  is  hired  to  take  Brown's  place ;  Brown  gets  the  same  rate 
of  pay  that  Smith  got  and  the  new  man  the  same  rate  of  pay 
that  Brown  got. 

The  department,  division,  and  day  of  pay-roll  week  should 
be  indicated.  In  the  proper  columns  the  name  and  occupation 
of  the  man  who  has  left  the  service  should  be  filled  in ;  whether 
he  resigned  or  was  discharged  should^  be  stated,  and  the  par- 
ticulars of  the  changes  made  because  of  such  resignation  or 
discharge.  In  the  case  cited  above  the  record  would  run  as 
follows:  John  Smith,  sub-station  operator,  or  blacksmith, 
resigned,  date.  Brown,  sub-station  operator,  or  blacksmith, 
promoted  to  succeed  Smith,  resigned.  Robinson  (new  man) 
employed  to  succeed  Brown,  promoted. 


PAY-ROLLS— SPECIAL   PROCEDURE  ^3 

Form  81  should  be  signed  by  the  local  representative  of 
the  department  and  approved  by  the  division  manager.  It 
should  be  attached  to  the  pay-roll  on  which  the  changes  are 
made  and  sent  to  the  comptroller's  office. 

Additional   Pay-Roll  Suggestions 

The  following  suggestions  should  be  observed  with  regard 
to  the  form  of  the  pay-rolls: 

1.  The  last  name  of  the  employee  should  appear  first  on 
the  pay-roll,  followed  by  his  initials  or  first  name.  Uniformity 
as  to  this  point  is  important. 

2.  So  far  as  possible  names  should  be  arranged  alpha- 
betically by  departments.  Where  there  is  a  large  number  of 
employees  designated  as  equipment  inspectors  or  line-men, 
that  particular  class  of  employees  should  be  arranged  in  alpha- 
betical order. 

3.  The  pay-roll  should  not  include  the  name  of  any 
employee  who  has  been  discharged,  or  who  has  left  the  ser- 
vice. In  making  up  the  roll  in  advance  it  may  be  necessary  to 
write  the  names  as  they  appeared  the  week  before,  but  when 
the  rolls  are  completed  the  timekeeper  should  strike  off  the 
name  of  any  employee  who  has  left  the  service  or  been  dis- 
charged since  the  pay-roll  sheets  were  written  up.  This  is  an 
important  matter,  because,  in  preparing  the  classification  of 
employees,  men  might  be  included  erroneously  under  a  par- 
ticular class  if  a  timekeeper  neglected  to  cross  off  from  the 
roll  the  name  of  some  employee  who  had  left  the  service  of 
the  company. 

4.  In  preparing  the  conductors'  and  motormen's  pay-rolls 
all  the  men  getting  one  rate  of  pay  should  be  grouped  together 
as  far  as  possible ;  the  names  within  this  group  should  be 
placed  in  alphabetical  order. 

5.  The  names  should  be  copied  on  the  pay-roll  so  far  as 
possible  in  the  same  order  each  week. 


1 84 


"OUTSIDE"   ACCOUNTING  WORK 


It  would  be  well  for  the  local  office  to  retain  an  impression 
copy  of  the  pay-rolls  each  week,  as  well  as  of  Forms  79,  80, 
and  81,  so  that  in  the  event  of  a  roll's  being  lost  in  transit 
after  leaving  the  local  office  a  copy  could  easily  be  made.  It 
would  also  be  useful  to  the  local  time  clerk  in  case  of  dispute 
as  to  the  amount  of  wages  due. 

Pay-Roll  Proof  Sheet 

While  making  out  the  conductors'  and  motormen's  pay- 
rolls from  the  time  slips  turned  in  daily  from  various  sources, 
the  time  clerk  will  find  it  useful,  and  in  fact  it  should  always 
be  a  rule,  to  prepare  a  daily  pay-roll  proof  sheet  as  per 
Form  82. 

This  form  is  used  as  a  summary  of  the  timekeeper's  work 
each  day  showing  the  regular  time  and  the  overtime  posted 


THE  WESSEX  COMPANY 

DIVISION 

PAY-ROLL  PROOF  SHEET 

Conductors 

Motormen 

Regular  Car  Hours  as  per  Schedule 
Extra  Car  Hours  as  per  Barn  Sheets 
Miscellaneous  Car  Hours  as  per  Barn 

Sheets 
Changes   in  Running  Time 
Express  Car  Hours 

TOTAL 

Regular  Time  Posted  on  Pay-roll 
Over            "            "         "          " 

I  certify  that  the  above  is  a  total  of  tl 
men  whose  names  appear  on  the  pa 

Date 19 Sigm 

le  time  posted   to  various 
y-roll  as  of  this  date. 

d 

Time  Cl^rk 

Form  82.    Pay-Roll  Proof  Sheet.    Size,  7^  X  10. 


PAY-ROLLS— SPECIAL   PROCEDURE  ^5 

from  the  time  slips  and  also  the  miscellaneous  changes  in  run- 
ning time,  express  time,  etc.,  the  total  of  which  must  equal  the 
regular  schedule  or  running  time  of  all  cars,  plus  or  minus  any 
changes  made  in  that  schedule. 

This  proof  sheet  form  will  be  found  very  handy.  One  can 
tell  by  looking  at  it  exactly  how  much  difference  there  is 
between  the  actual  time  allowed  the  men  and  the  actual  time 
posted  on  the  pay-rolls.  If  the  timekeeper  is  careful  to  carry 
it  out  each  day  there  will  be  no  question  whether  the  pay-roll 
is  absolutely  correct.  There  will  be  occasional  cases,  of  course, 
where  the  proof  sheet  does  not  exactly  check  because  of  a 
few  minutes  allowed  or  not  allowed  by  the  barn  foreman. 
Experience  will  show  very  little  variation,  however,  and  the 
proof  should  be  worked  out  each  day. 

Prompt  Notice  of  Errors  to  Comptroller 

The  time  clerk  may  discover  after  the  pay-rolls  have  been 
sent  to  the  comptroller's  office  that  they  included  names  of 
men  no  longer  employed  by  the  company,  or  that  they  credited 
employees  with  a  larger  amount  than  is  correct.  He  should 
notify  the  division  manager  who  will  then  notify  the  division 
cashier,  and  the  time  clerk  should  send  a  copy  of  this  notice 
to  the  comptroller.  The  notice  states  what  change  should  be 
made  and  to  what  account  the  man's  wages  have  been  charged 
so  that  proper  adjustment  can  be  made  in  the  distribution. 

Checking  Pay-Rolls  in  Comptroller's  Office 

The  pay-rolls  when  made  up  are  sent  to  the  comptroller's 
office  as  soon  as  possible  after  the  close  of  the  pay-roll  week, 
which  according  to  the  plan  sketched  in  this  book  is  on  Friday 
night.    The  new  pay-roll  week  commences  on  Saturday. 

When  the  pay-rolls  from  the  various  divisions  reach  the 
comptroller's  office,  usually  on  Monday  morning,  the  clerk 
who  has  special  charge  of  this  matter  should  first  see  that  the 


!86  "OUTSIDE"   ACCOUNTING  WORK 

rolls  are  prepared  in  accordance  with  instructions  issued  by 
the  comptroller  to  the  division  managers.  The  rolls  should 
then  be  distributed  to  the  various  clerks  assigned  to  this  duty 
to  be  checked  for  mathematical  correctness.  When  the  check- 
ing is  completed  a  voucher  should  be  made  up  for  the  total 
amount  in  favor  of  the  division  cashier  and  initialed  by  the 
clerk  who  did  the  checking.  The  rolls  with  the  voucher 
should  then  be  submitted  to  the  comptroller  for  his  signature 
and  approval  for  payment.  The  voucher,  as  soon  as  approved, 
should  go  to  the  voucher  register  clerk  and  then  to  the  com- 
pany treasurer.  He  signs  a  check  for  the  amount  due  and 
forwards  it  to  the  division  cashier,  who  must  then  cash  it  at 
the  bank  and  obtain  the  necessary  funds,  in  the  proper  denomi- 
nations to  pay  off  the  entire  pay-roll.  The  pay-rolls  in  the 
meantime  have  been  sent  from  the  comptroller's  office  by  regis- 
tered mail  to  the  division  cashiers,  who  have  the  duty  of 
actually  paying  the  division  employees.  The  latter  part  of 
the  process  after  the  rolls  reach  the  comptroller  is  entirely 
under  the  direction  of  the  chief  clerk,  thus  relieving  the  clerk 
in  charge  of  the  pay-roll  work. 

Payment  of  Employees 

In  connection  with  the  actual  payment  the  following 
points  should  be  observed  by  the  division  cashiers : 

1.  Every  employee  must  sign  the  pay-roll  as  he  receives 
his  pay  envelope.  In  most  cases  this  requirement  is  easy  to 
meet  but  there  are  certain  exceptional  cases. 

2.  It  will  sometimes  happen  that  after  the  receipted  rolls 
have  been  returned  finally  to  the  comptroller's  office  the  divi- 
sion cashier  will  receive  a  request  from  some  employee  for 
payment,  or  a  request  to  pay  some  other  party.  In  this  case, 
in  addition  to  an  order  from  the  employee,  the  cashier  must 
always  obtain  the  signature  of  the  party  he  pays  and  be  sure 
to  attach  to  the  receipted  roll  the  employee's  order. 


PAY-ROLLS— SPECIAL   PROCEDURE 


I87 


3.  At  times  it  may  be  impossible  for  a  man  to  be  present 
at  the  time  of  payment  to  receive  his  money  in  person.  In 
this  case  he  may  send  an  order  to  the  division  cashier  to  pay 
the  wages  to  another  person  for  him.  To  facilitate  the  proper 
filing  of  such  notifications  with  the  receipted  pay-rolls,  Form 
83  has  been  provided. 


THE  WESSEX  COMPANY 
PAYMASTER: 

Please  pay  to 

my  wages  for  the  week  ending 

Approved  Signed 


Form  83.    Assignment  of  Wages.    Size,  SZA  x  3- 

Paying  Illiterate  Employees 

Where  a  system  of  receipts  is  in  effect  there  is  only  one 
legal  way  of  dealing  with  employees  who  cannot  write.  It 
may  be  illustrated  as  follows: 

1.    Where  Numbers  Are  Used 

Signature  Witness 

#486  His  Tom  Smith 

X 
Mark 

2.    Where  Name  Is  Used 

Signature  Witness 

His  Tom  Smith 

Tony  X  Esposito 
Mark 


i88 


"OUTSIDE"  ACCOUNTING   WORK 


From  the  above  it  can  readily  be  seen  that  it  is  necessary  to 
write  in  the  number  or  the  name  of  the  employee  in  addition 
to  the  signature  of  a  witness.  "His  Mark"  can  be  either  writ- 
ten in  or  put  on  with  a  rubber  stamp. 

To  make  the  above  illustration  more  clear  it  might  be 
added  that  a  pay-roll  which  contains  either  the  names  or  num- 
bers of  employees  can  be  stamped  in  the  signature  column 
"His  Mark"  right  down  through  the  page.  When  the  em- 
ployees are  paid  off  the  cashier  has  merely  to  see  that  the 
employee  makes  a  mark,  and  may  then  fill  in  the  employee's 
name  or  number,  with  his  own  or  his  assistant's  name  in  the 
witness  column.  Under  no  circumstances  should  the  pay- 
master make  the  cross  for  the  employee.  The  employee  must 
make  the  cross  himself  or  touch  the  pencil  while  it  is  being 
made. 

All  receipted  pay-rolls,  together  with  the  usual  certificate 
on  Form  84  should  be  forwarded  to  the  comptroller's  office  on 
the  Friday  following  the  day  on  which  the  employees  were 
paid  off. 


THE  WES5EX  COMPANY 

I  hereby  certify  that  the  persons  named  on  this  pay-roll  fbr  the  week 
pnrlinrj                                                                have  br^n  paid  the  sums  set  opposite 
their  respective  names  excepting  those  named  below,  and  that  the  amounts 
for  those  not  paid  are  held  by  me. 

NAME 

OCCUPATION 

AMOUNT 

TOTAL 

h 

OFFICF 

DATF. 

1 

Division  Cashier  or  Paymaster 

Form  84.     Certificate  to  Pay-Rolls.     Size,  SJ/2   X  14. 


PAY-ROLLS— SPECIAL   PROCEDURE 


189 


Unclaimed  Wages 

When  wages  are  not  claimed  at  the  regular  payment  time 
the  division  cashier  should  enter  all  amounts  not  properly 
receipted  in  the  records  of  unclaimed  wages,  Form  85.  This 
entry  will  agree  with  Form  84  above.  On  the  following 
morning,  Saturday,  all  the  money  for  unclaimed  wages  in  the 
cashier's  hands  should  be  placed  in  the  bank,  in  a  special 
deposit  credited  to  an  account  called  "Paymaster's  Account." 
This  deposit  should  be  reported  to  the  treasurer  to  be  credited 
to  "Paymaster's  Account."  A  list  should  be  sent  to  the  comp- 
troller's office,  giving  the  details  of  this  deposit  and  showing 
the  name,  occupation,  amount  of  wages,  and  the  week. 

After  the  receipted  pay-roll  has  been  sent  to  the  comptrol- 
ler's office  all  payments  of  wages  reported  unclaimed  will  be 
paid  by  the  division  cashier,  unless  the  claim  for  wages  is 
more  than  six  months  old  (see  page  193)  from  the  working 
fund  (see  page  71),  a  receipt  for  the  sum  being  secured  on 
the  regular  pay-roll  sheet  (Form  75). 


THE  WE55EX  COMPANY 

RECORD  OP  UNPAID  EMPLOYEES 

Week 
Ending 

Raymasfer's 
Number 

Name 

Occupation 

Amount 

Date  Paid 

Form  85.    Record  of  Unpaid  Employees.    Size,  8  X  14. 


Payment  of  Wages  Not  Claimed  at  Regular  Time 

When  a  man  calls  for  his  wages  after  the  pay-roll  covering 
them  has  been  returned  to  the  comptroller's  office  the  records 
should  be  looked  up.  If  the  man's  name  is  entered  there  the 
cashier  should  take  a  copy  of  the  regular  pay-roll  sheet  and 


I90  "OUTSIDE"   ACCOUNTING   WORK 

write  on  it  the  man's  name  and  occupation,  and  across  the 
space  provided  for  "Time"  the  day  or  the  week  for  which  he 
is  to  be  paid,  and  the  amount. 

The  employee  should  sign  this  in  the  space  provided  and 
the  cashier  should  enter  in  the  "Unclaimed  Wage  Book" 
(Form  85)  in  the  column  "Date  Paid,"  the  date  the  payment 
was  made.  The  clerk  making  the  payment  should  enter  his 
initials  in  the  column  "Paymaster's  No."  When  taking 
receipts  on  the  regular  pay-roll  form  each  line  on  the  form 
may  be  used  for  a  separate  payment,  so  that  one  sheet  will  be 
a  receipt  for  all  the  payments  of  this  nature  made.  If  neces- 
sary, of  course,  two  sheets  may  be  used. 

This  additional  pay-roll  sheet  or  sheets  should  be  handled 
just  like  any  other.  It  should  be  entered  on  the  week's  pay- 
roll voucher  as  a  separate  item :  "Unclaimed  Wages  $ " 

When  the  pay-roll  check  is  received  from  the  company  treas- 
urer the  division  cashier  should  take  out  the  amount  called  for 
by  that  item  and  reimburse  the  working  fund.  To  illustrate, 
during  the  week  ending  July  13  suppose  $50  is  paid  out  of  the 
working  fund  in  payment  of  unpaid  wages  for  previous  weeks. 
A  receipt  is  taken  on  the  pay-roll  (Form  75).  When  the 
regular  voucher  to  cover  the  pay-roll  for  the  week  ending 
July  13  is  being  prepared  it  should  be  arranged  to  include  this 
$50  on  it  as  directed  above.  This  pay-roll  sheet  should  be  sent 
in  to  the  comptroller's  office  with  the  voucher  covering  it  and 
should  be  charged  on  the  distribution  (Forms  86,  87)  to 
"Unclaimed  Wages."  Assuming  that  the  regular  pay-roll  for 
the  week  ending  July  13  was  $5,000,  the  cashier  would  in  the 
case  shown  above  draw  a  voucher  for  $5,050.  On  the  distri- 
bution the  comptroller's  office  would  charge  "Pay-roll  Sus- 
pense" with  the  supposed  $5,000  and  Unclaimed  Wages  with 
$50.  The  regular  pay-roll  distribution  would  be  made  up  as 
heretofore  for  $5,000.  Very  great  care  should  be  exercised, 
particularly  in  keeping  up  Form  85. 


PAY-ROLLS— SPECIAL   PROCEDURE 


IQI 


THE  WESSEX  COMPANY 

Distribution  nf  fay-roll  week  ending 
Division                                                                                              v>  N^ 

WTE  -  Details  of  Accounts  marked  *  should  be  shown  on  separate  report,  as  per  instructions. 

NO. 

NAME 

AMOUNT 

NO. 

NAME 

AMOUNT 

I  -  MTCE.  WAY  AND  STRUCTURES 

Total  Brought  Forward 

1 

Supt  of  Way  and  Structures 

IV-  CONDUCTING  TRANSPORTATION 

8 

Track  and  Roadway  Labor 

63 

Supt.  of  Transportation 

8 

"                              ••  Other  Div* 

64 

Passenger  Cond.,  Motormen  STrainmen 

9 

Misc.Track  and  Roadway  Expenses 

© 

frght&Exp.   «...      •.. 

10 

Paving 

55 

Misc.  Car  Service  Employees 

11 

Cleaning  and  SandinqTrack 

G7A 

"      •*        '•      Expenses-Pass.Dept. 

12 

Removal  of  Snow  and  Ice    ■ 

67B 

»      «        »           m      -Exp.Dept. 

15 

Bridqesjrestles  and  Culverts 

68A 

5tation  Employees-Pass.  Dept. 

16 

Crossings  Fences  and  Signs 

&3B 

»            «        -Exo.  Dept. 

17 

Signals  and  Interlocking  Apparatus 

69  A 

Station  Expenses-  Pass. Dept. 

-_. 

II-MAINTENANCE  OF  EQUIPMENT 

V- TRAFFIC 

?Q 

Supt  of  Equipment 

73 

Superintendence  and  Solicitation 

30 

Passenger  &  Combination  Cars 

eo 

Advertising 

30 

* 
»         »           »           "OtherDiv. 

8! 

Parks,  Resorts  and  Attractions 

31 

Freight,  Express  and  Mail  Cars 

82 

Miscellaneous  Traffic  Expenses 

Form  86.     Weekly  Distribution  of  Pay-Rolls.     Size,  8^   X   14. 


192 


"OUTSIDE"  ACCOUNTING   WORK 


Distribution  of  Pay-Rolls 

An  important  matter  for  the  division  managers  to  observe 
is  that  of  the  distribution  of  pay-rolls.  For  this  Form  86  is 
used.  The  pay-roll  charges  are  distributed  among  the  primary 
accounts  of  the  operating  expense  schedule  prescribed  by  the 
Interstate  Commerce  Commission  on  pages  9  to  42  of  their 
Uniform  System  of  Accounts  for  Electric  Railways,  19 14.  A 
plain  sheet  of  the  same  size,  Form  87,  is  used  to  show  details 
for  which  there  is  not  room  on  Form  86. 


THE  WESSEX  COMPANY 

DH-ailerf  Di<=,trihi  i+inn  of  Pay-mil  Week  Fnriing 
Division 

Total 
Amount 

— ===== 

Approved :                                                              Correct : 

Time  Clerk 

Form  87.    Distribution  of  Pay-Roils.    Size,  8T/2  X  14. 


Final  Checking  of  Pay-Roll 

When  the  receipted  pay-rolls  reach  the  comptroller's  office 
a  week  after  being  paid  they  must  be  carefully  checked  again. 

A  card  index  of  all  division  employees  in  all  departments 
of  the  company  is  kept  on  Form  88.  The  receipted  pay-rolls 
must  be  checked  against  this.  Any  changes  in  salary  or  posi- 
tion should  be  noted  and  recorded  upon  the  cards  after  the 
increases  have  been  verified  by  authorities  as  explained  above. 
After  all  receipted  rolls  have  been  properly  checked  and  veri- 
fied they  should  be  put  away  until  a  sufficient  quantity  is  accu- 
mulated and  then  bound  in  volumes  and  placed  in  the  files. 


PAY-ROLLS— SPECIAL    PROCEDURE 


193 


THE  WE5SEX  COMPANY 

NAME                                                                                 OCCUPATION 

IN  PLACE  OF                                                                   DIVISION 

TRANSFERRED  FROM                                               TO                                               DATE 

- 

. 

DATE 
ENTERED 
SERVICE 

AUTH. 
NO 

IN- 
CREASED 

DE- 
CREASED 

RATE  PER 
HOUR          DAY        WEEK 

LEFT 
THE 

SERVICE 

REASON 

RESTORED 

THI5  RECORD   CONTINUED  ON  CARD  ISSUED 

Form 


Index  Card  of  Employees.     Size,  6X4. 


Careful  Record  of  "Authorities" 

The  checking  of  monthly  pay-rolls  should  be  handled  by 
special  clerks  or  be  under  the  strict  supervision  of  the  comp- 
troller. 

All  increases  in  the  clerical  force  should  be  covered  by 
authority  from  the  office  of  the  vice-president  or  president. 
In  the  case  of  monthly  pay-rolls  it  is  necessary  whenever  there 
is  an  increase  in  the  rolls  to  advise  the  company  treasurer  by 
letter,  stating  the  name,  title,  address,  and  monthly  salary,  so 
that  the  treasurer  can  obtain  a  receipt  from  the  person  con- 
cerned on  a  form  of  receipt  blank  used  for  the  purpose.  After 
the  "authorities"  have  all  been  checked  with  the  pay-rolls  they 
should  be  placed  in  the  proper  file  and  kept  in  good  order  for 
reference. 


Writing  Off  Unclaimed  Wages 

Every  six  months  an  entry  should  be  made  in  the  general 
journals  writing  off  the  amount  of  unclaimed  wages  for  the 
previous  six  months.  That  is,  in  June  all  unclaimed  wages 
should  be  written  off  up  to  December  31  of  the  previous  year. 


194 


"OUTSIDE"   ACCOUNTING   WORK 


THE  WE5SEX  COMP/ 

Distribution  of  fey-rolls  for  Month  of_ 


Division 
Sheet  1 


Cleaning  &S3ndinq  Track 


THE  WES5EX  COMPANY/ 

Distribution  of  Pay-rolls  for  Month  of / 

Note  Details  of  Accounts  marked  *  should  be  shown  on  separate  sheet 


Form 


Distribution  of  Pay-Rolls.     Size,  10%  X  14. 


PAY-ROLLS— SPECIAL   PROCEDURE 


195 


When  this  is  done  the  division  cashiers  should  be  notified  so 
as  to  bring  their  records  into  accord. 

A  record  called  "Paymasters'  Account"  is  kept  in  which 
is  entered  the  account  of  unclaimed  wages  in  the  hands  of  the 
local  cashiers.  It  covers  one  week  only,  as  the  cashiers  deposit 
once  a  week  the  amount  on  hand  for  the  second  week  previous. 

Final  Record  and  Journal  Entries 

After  the  distributions  have  all  been  received  and  checked 
they  should  be  written  up  on  Form  89,  which  combines  the 
weekly  distributions  into  a  monthly  distribution  report.  From 
this,  in  turn,  are  prepared  the  necessary  entries  for  the  general 
journals. 


CHAPTER    XII 

THE   PURCHASING   DEPARTMENT 

Volume  Large  but  Procedure  Simple 

A  street  railway,  like  any  large  business,  requires  a  large 
and  constant  supply  of  materials.  To  avoid  duplication, 
waste,  and  disproportionate  cost,  every  street  railway  com- 
pany maintains  a  purchasing  department,  through  which  pass 
all  orders  for  supplies  except  emergency  orders.  The  account- 
ing department  has  little  to  do  directly  with  this  process  until 
it  comes  to  checking  the  goods  obtained  and  paying  the  bills. 
Indirectly,  however,  the  accounting  department  is  very  much 
concerned  with  the  methods  followed  by  the  purchasing 
department  to  insure  that  adequate  checks  and  records  of  all 
transactions  are  provided  and  observed. 

While  the  volume  of  business  handled  by  the  purchasing 
department  is  very  large,  the  procedure  is  readily  standardized 
and  made  simple,  so  that  in  this  connection  it  may  be  dis- 
missed rather  briefly.  The  method  here  outlined  may  be  used 
to  advantage  whether  the  purchasing  department  is  large  or 
small.  There  are  four  steps  to  be  considered:  (i)  making 
the  requisition,  (2)  buying,  (3)  invoices,  and  (4)  following 
up  back  orders. 

Making  the  Requisition 

All  purchases  are  made  only  upon  properly  approved 
requisitions.  Most  of  these  requisitions  are  made  up  by  the 
division  stores  keepers,  who  should  anticipate  their  wants,  or 
in  other  words  arrange  to  keep  an  ample  supply  of  current 
stock  on  hand. 

196 


THE   PURCHASING   DEPARTMENT 


197 


Requisitions  for  new  material  are  prepared  by  the  official 
tinder  whom  the  material  is  to  be  used.  A  requisition  blank 
should  be  provided  somewhat  like  Form  90,  "Requisition  on 
Purchasing  Agent."  This  blank  should  be  prepared  in  dupli- 
cate, the  original  to  go  through  and  the  duplicate  to  be  held 
by  the  person  writing  the  requisition.  The  requisition 
should  be  approved  by  the  proper  officials:  the  division 
manager  and  general  manager,  when  the  material  is  to  be 
used  in  the  maintenance  of  the  property;  the  chief  engineer 
when  the  material  is  to  be  used  in  the  maintenance  of  prop- 
erty under  his  supervision;  and  the  construction  engineer 
when  it  is  required  for  work  under  his  supervision;  or,  when 
occasion  arises,  by  any  official  who  is  empowered  to  order  sup- 
plies or  materials. 


THE  WESSEX  COMPANY 

191 

To  the  Purchasing  Agent;  J  Pf*- 

Thc  following  articles  are-  required  for  the  Companys  use  and  c  •<  G.S.K_ 
should  be  deli'veredio. 3t dlPA. 


1  certify  that  1  have  examined  the  above  requisition  and  am  satisfied  that  the  articles 
enumerated  therein  are  necessary  for  use,  and  not  in  excess  of  immediate  requirements 

Stores  Keeper 

CerTl  5fore5Keeper 


Form  90.     Requisition  on  Purchasing  Agent.     Size,  8J/2  X  11. 


All  requisitions  receive  the  final  approval  of  the  presi- 
dent and  are  then  forwarded  to  the  general  stores  keeper,  who 
determines  whether  there  is  material  of  that  sort  at  any  point 
on  the  property  which  can  be  diverted  to  obviate  the  proposed 
purchase  of  new  material.  The  general  stores  keeper  consults 
with  the  chief  engineer  and  the  engineer  of  construction  as  to 
the  specifications  for  all  supplies.    After  he  is  assured  of  the 


198 


"OUTSIDE"   ACCOUNTING  WORK 


proper  delivery  of  material  purchased,  he  must  certify  bills  for 
the  same  and  forward  them  to  the  comptroller  for  payment. 

Contracts  for  all  materials  and  equipment  negotiated  by 
the  purchasing  agent  must  be  submitted  to  the  president  for 
approval  before  execution. 

Buying 

On  receipt  of  requisitions  correctly  drawn  and  approved 
by  the  proper  official,  the  purchasing  agent  either  orders  the 


ORIGINAL 
THE  WESSEX  COMPANY 
PURCHASING  DEPARTMENT 

Order  No. 

Req.  No. 

Mark  above  numbers  on  each 

package,    invoice  and   bill   of   lading. 

Please  ship  the  following  material,  marking  each  package 
The  Wessex  Company,  care  of 

Send  original  and  duplicate  of  invoice  to  Purchasing 
Agent,  triplicate  and  bill  of  lading  to  consignee  unless  other- 
wise directed.  No  invoice  to  cover  material  on  more  than 
one  order. 

Freight  charges  must  be  prepaid  to  destination  on  all  ship- 
ments; where  material  is  sold  F.  O.  B.  point  of  shipment,  add 
the  charges  so  paid  to  the  bill  for  reimbursement. 

See  Notice  on  Back,  Which  Please  Read  Carefully. 

In  case  it  is  necessary  to  ask  for  information  regarding  any 

items  on  this  order,  please  give  name  of  consignee 

as  well  as  order  and  requisition  numbers. 


Form  91.     (a)  Order  Blank  (face).    Size,  8  X  10J/2. 


THE  PURCHASING  DEPARTMENT 


199 


NOTICE 

1.  Do  not  hold  goods  to  complete  order  in  one  consignment 
but  make  shipments  as  material  may  be  ready,  sending  a  com- 
plete set  of  invoices  on  our  forms  to  cover  each  shipment  as 
directed  on  the  face  of  invoice  blanks.  State  where  goods  are 
sent,  number  of  packages,  number  and  date  of  this  order  and 
number  of  req.  on  each  invoice  and  bill  of  lading. 

2.  Invoice  blanks  will  be  mailed  to  you  when  written  for. 

3.  Do  not  send  more  goods  than  are  ordered,  as  they  will 
not  be  paid  for,  but  will  be  returned  at  the  expense  of  the  con- 
signor. 

4.  Bills  are  payable  at  the  office  of  the  Treasurer  of  The 
Wessex  Company. 

5.  Accounts  for  current  month  will  be  closed  on  the  first 
of  the  following  month,  and  bills  received  after  that  date  go  into 
the  next  month's  account,  regardless  of  the  date  they  may  bear. 

6.  This  company  will  not  be  responsible  for  any  goods  ship- 
ped, unless  by  order  of  the  Purchasing  Agent. 

7.  Drafts  will  not  be  honored  by  this  Company. 

8.  This  Company  will  not  pay  for  Packages  or  for  Cartage. 

9.  All  material  is  purchased  subject  to  this  Company's  in- 
spection when  received;  rejected  material  to  be  returned  at  ex- 
pense of  shipper. 

10.  When  car  number  and  initial  can  be  obtained  it  should 
be  shown  on  invoice. 

11.  If  promises  of  delivery  of  any  or  all  items  do  not  meet 
our  requirements  we  reserve  the  right  to  purchase  elsewhere, 
notifying  you.  Should  any  portion  of  this  order  be  unfilled  at  the 
expiration  of  60  days  from  its  date,  we  reserve  the  right  to  cancel 
said  unfilled  portion,  notifying  you. 

12.  This  Company  will  not  pay  interest  charges  on  bills 
overdue. 

13.  Assignments  will  not  be  acceptable  to  this  company. 


Form  91.     (b)   Order  Blank   (reverse). 


goods,  or  sends  out  for  prices  or  bids  in  competition  so  that 
he  may  be  in  a  position  to  buy  where  the  cheapest  goods  con- 
sistent with  the  proper  quality  can  be  obtained.  Some  com- 
panies use  a  regular  form  letter  for  the  purpose  of  getting 
quotations  and  there  is  no  objection  to  this  method  if  the  com- 
pany is  large  enough  to  warrant  such  procedure. 

It  is  very  important  for  accuracy  in  checking  records  that 
all  orders  be  prepared  on  a  uniform  order  blank,  for  example, 
Form  91.  This  order  blank  should  be  in  triplicate.  The 
original  is  signed  by  the  purchasing  agent  and  is  mailed  to  the 
party  from  whom  the  material  is  to  be  purchased ;  the  dupli- 
cate is  retained  as  an  office  copy;  the  triplicate  is  sent  to  the 
official  to  whom  the  materials  or  supplies  are  to  be  shipped. 


200  "OUTSIDE"   ACCOUNTING   WORK 

Invoices 

As  the  bills  or  invoices  for  material  purchased  come  in 
they  are  forwarded  to  the  purchasing  agent's  office,  where  the 
quantity  will  be  checked  against  the  order  and  the  price 
against  the  quotation  or  against  the  regular  list  or  catalogue 
price.  This  branch  of  work  in  the  purchasing  agent's  office 
should  be  done  with  great  care.  Billing  clerks  often  make 
errors,  and  unless  their  errors  are  caught  by  the  purchasing 
agent  the  company  may  lose  a  considerable  sum  of  money  dur- 
ing a  year.  After  the  invoices  have  been  checked  and  the  pur- 
chasing agent  has  approved  them  they  should  be  forwarded 
to  the  comptroller's  office  and  there  dealt  with  as  explained  in 
Chapter  XX. 

Following  Up  Back  Orders 

Where  orders  for  material  are  many  and  varied,  as  is  the 
case  with  any  large  company,  there  will  be  frequent  delays  and 
difficulty  in  obtaining  the  goods  desired.  An  important  part, 
of  the  purchasing  agent's  duty,  therefore,  consists  in  follow- 
ing up  all  back  orders  or  bills  that  for  any  cause  have  been 
delayed.  If  this  is  not  done,  the  supply  of  materials  is  apt  to 
run  low ;  furthermore,  invoices  may  not  be  presented  on  time. 

In  this  matter  the  accounting  department  is  directly  con- 
cerned, as,  unless  the  materials  ordered  with  their  proper 
invoices  are  presented  on  time,  the  accounting  department  is 
unable  to  reflect  the  true  condition  of  the  company  upon  its 
books. 


CHAPTER    XIII 

THE     STORES     DEPARTMENT  —  RECEIPT     AND 
ISSUE  OF  MATERIAL 

Relation  to  Accounting  Department 

Complementary,  to  the  purchase  of  material  is  the  matter 
of  keeping  track  of  and  distributing  company  supplies. 

The  procedure  in  connection  with  the  stores  work  is  neces- 
sarily much  more  complex  and  detailed  than  that  of  the  pur- 
chasing department.  The  stores  department  is  organized  with 
a  main  office  under  the  charge  of  the  general  stores  keeper 
and  division  offices  under  division  stores  keepers,  these  latter 
responsible  in  certain  ways  to  the  general  stores  keeper  and 
also  as  explained  in  Chapter  I,  to  the  division  managers.  In 
the  case  of  the  stores  department,  in  fact,  the  division  office 
is  particularly  important.  The  general  stores  keeper,  of 
course,  supervises  and  correlates  the  activities  of  all  the  divi- 
sions, but  the  actual  work  of  the  department  is  done  mainly 
through  the  division  offices. 

The  accounting  department  touches  the  work  of  the  stores 
department  in  two  ways.  It  has  a  general  supervision  over 
the  methods  of  recording  the  receipt  and  distribution  of  mate- 
rial, and  it  has  the  duty  of  checking  over  the  storeroom 
accounts  once  or  twice  a  year  through  an  inventory. 

Routine  in  Stores  Department 

With  regard  to  handling  material,  the  methods  of  the 
stores  department,  while  practically  uniform  in  principle,  may 

201 


202  "OUTSIDE"   ACCOUNTING  WORK 

differ  somewhat  in  minor  details  according  to  local  conditions 
and  the  size  of  the  various  divisions.  So  far  as  practicable,  of 
course,  all  the  division  stores  keepers  should  follow  the  same 
rules  in  connection  with  their  work  and  the  routine  should  be 
as  simple  and  as  complete  as  possible.  This  routine  may  be 
conveniently  grouped  under  six  heads : 

I.    Requisitions 


Receipt  of  Material 

Issue  of  Material 

Care  of  Material  While  in  Stock 

Transportation  Charges  and  Scrap 

Inventories 


Requisitions 

The  process  of  ordering  supplies  has  been  explained 
already  in  Chapter  XII.  The  requisition  (Form  90)  for  all 
orders  is  prepared  in  duplicate  in  the  office  of  the  division 
manager  or  of  the  division  stores  keeper,  as  the  case  may  be. 
The  original  is  sent  to  the  general  stores  keeper  and  the  dupli- 
cate is  retained  by  the  division  stores  keeper. 

It  is  most  important  that  the  essential  points  in  every  requi- 
sition— quantity,  number,  etc. — shall  be  entered  immediately 
on  a  stock  card  (Form  92)  and  the  requisition  then  placed 
on  file. 

This  stock  card  amounts  in  reality  to  a  running  or  perpet- 
ual inventory  of  the  material  which  is  supposed  to  be  in  the 
storeroom  at  all  times.  It  shows  the  name  and  description  of 
articles ;  the  amount  or  number  on  hand  according  to  the  last 
inventory;  the  amount  and  price  of  all  goods  purchased;  the 
monthly  consumption  or  amount  used  as  detailed  on  reverse 
side  of  card;  and  the  balance  on  hand  at  the  end  of  every 
month.  These  cards  are  a  vital  record  for  the  storeroom  and 
great  care  should  be  exercised  to  see  that  they  are  accurately 
filled  out. 


STORES-RECEIPT  AND   ISSUE 


203 


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204 


"OUTSIDE"   ACCOUNTING   WORK 


When  the  order  has  been  placed  by  the  purchasing  depart- 
ment a  copy  is  sent  to  the  stores  department,  where  number 
and  quantity  are  checked  against  the  stock  card  and  changes 
are  made  on  the  card  if  necessary. 

Receipt  of  Material 

Material  is  sometimes  received  at  the  main  storeroom  and 
distributed  thence  to  the  divisions,  but  more  often  it  comes 
first  to  the  division  storerooms.  It  is  received  by  the  stores 
keeper  or  receiving  clerk. 

All  material  received  should  be  carefully  checked  and 
examined  and  then  as  carefully  recorded  and  stored  where  it 
can  be  readily  found.  In  every  case  it  should  be  counted  or 
weighed  and  its  condition  closely  noted.  If  it  is  accompanied 
by  a  shipping  memorandum  or  triplicate  invoice  of  the  mate- 


Sheet  No.. 
DAILY  REPORT 
THE  WESSEX  COMPANY 


191 


Stores  Keeper : 

The  following  Material  has  been  rec'd  this  day  by. 
At Signed  by 


Quantity 


Description  of 
Material 


Name  of 

Shipper 


State  Whether 
Received  by  Frt., 
Expresi  or  Team 


If  Freight 
State  Pr». 
Number 


Where  Stored 
(State  Location) 


If   Material    Is   Received   In    Bad    Condition    Note  Same   Below 


Remarks 


Form  93.    Daily  Report  of  Material  Received.    Size,  8^  X  5^. 
(Columns  continued  on  reverse  of  form) 


STORES— RECEIPT  AND   ISSUE 


205 


rial  purchased,  the  date  of  receipt  should  be  stamped  or  writ- 
ten thereon,  with  a  notation  as  to  quantity  and  condition.  If 
there  is  no  shipping  memorandum  the  items  checked  should 
be  noted  on  a  "Daily  Report  of  Material  Received  in  Store- 
room" (Form  93). 

Checking  with  Shipping  Memorandums 

The  shipping  memorandums  should  be  turned  in  to  the 
stock-room  office  of  the  division  storeroom  at  the  end  of  each 
day.  The  stock-room  office  will  enter  the  quantity  and  date 
in  the  respective  columns  on  the  stock  card.  The  shipping 
memorandums  which  are  held  on  file  should  bear  the  order 
number. 

If  there  are  discrepancies  between  the  material  received 
and  the  shipping  memorandum  or  triplicate  invoice,  a  nota- 
tion should  be  made  in  pencil  on  the  stock  card  after  the  order 
number  and  also  on  the  purchasing  agent's  order,  which  is  on 
file.  All  shortages  and  incorrect  shipments  should  be  reported 
to  the  purchasing  agent  and  a  copy  of  the  report  should  be 
sent  to  the  general  stores  keeper. 

After  all  material  is  received,  the  date  of  receipt  should 
be  marked  on  the  purchasing  agent's  order  opposite  the  item. 
When  all  the  items  are  received  on  any  one  order,  the  copy 
of  that  order  should  be  sent  to  the  stock-room  office  and  placed 
on  a  numerically  arranged  file  of  completed  orders. 

Stock  Cards  and  Invoices 

To  facilitate  the  balancing  of  the  stock  cards  at  the  end 
of  the  month,  the  unit  in  which  the  goods  received  are  reck- 
oned— dozens,  pounds,  gallons,  etc. — should  correspond  with 
the  unit  which  is  used  in  the  column  of  issues.  For  instance, 
nails  should  not  be  listed  by  kegs  among  articles  received  and 
by  pounds  among  articles  issued.  The  quantity  and  price  on 
the  triplicate  should  therefore  be  reduced  to  the  terms  used  in 


206  "OUTSIDE"   ACCOUNTING   WORK 

the  unit  of  issues  and  the  entry  made  on  the  stock  card  should 
be  in  accordance  therewith.  It  is  essential  that  the  date  of 
material  received  should  include  the  year  date. 

To  facilitate  the  subsequent  pricing  of  material  so  that  it 
may  be  issued  at  the  correct  price,  it  is  important  that  each 
lot  as  it  is  received  should  be  given  a  lot  number,  as  explained 
below. 

When  the  freight  bill  is  received,  that  also  should  be 
entered  on  the  stock  card  and  the  bill  properly  stamped.  It 
is  important  that  the  figures  on  each  stock  card  be  carried  out 
to  the  column  "Price  Including  Freight." 

The  original  invoices  for  material  ordered  are  sent  from 
the  comptroller's  office  to  be  checked.  They  should  be  com- 
pared with  the  triplicates,  and  if  in  order  they  should  be  duly 
signed  to  indicate  that  the  material  has  been  received  and 
marked  up  to  show  the  proper  accounts  chargeable  and  the 
dates  when  they  were  passed. 

The  stores  keeper  will  give  each  invoice  a  number.  The 
triplicates  should  bear  this  number,  together  with  the  date 
when  they  were  passed,  and  this  information  should  also  be 
entered  on  the  stock  card.  In  cases  where  no  triplicate  is 
received  from  the  shipper,  the  stores  keeper  will  make  up  a 
memorandum  in  similar  form  for  his  files. 

Rule  for  Charging  Material 

All  material  which  is  handled  in  any  way  by  the  stores 
keeper  should  be  charged  to  General  Stores.  There  are  one 
or  two  exceptions  to  this  rule  which  need  a  word  of  comment. 
Even  in  the  cases  of  these  exceptions,  however,  it  should  be 
insisted  that  all  material  handled  by  the  men  in  the  storeroom 
should  be  charged  at  first  to  General  Stores,  until  such  time 
as  it  is  used,  and  should  then  be  reported  in  the  regular  way 
in  the  monthly  report  of  material  used. 

Car  bodies,  trucks,  and   wheels  purchased   for  new  cars 


STORES-RECEIPT   AND   ISSUE 


207 


under  authorization  might  be  considered  exceptions  to  the 
rule  just  stated.  The  invoices  covering  them  should  be 
charged  to  the  proper  authorization  and  not  to  General  Stores 
account.  This  applies  only  to  material  for  new  cars,  how- 
ever, and  not  to  trucks  and  wheels  purchased  to  replace  others 
which  are  worn  out;  these,  of  course,  will  be  handled  in  the 
usual  way.  When  air  brakes  and  electrical  equipment  are 
received,  each  case  should  be  taken  up  with  the  comptroller's 
office  for  a  ruling.  One  other  possible  exception  is  that  of 
large  new  machinery  for  power  stations. 

Expediting  Discount  Bills 

All  discount  bills  should  be  passed  immediately.  If  any 
of  them  are  passed  before  the  material  to  which  they  refer  is 
received,  proper  steps  should  be  taken  to  hurry  that  material 
along;  if  the  material  has  not  been  delivered  after  a  reason- 
able time,  the  matter  should  be  taken  up  with  the  purchasing 
agent  and  copies  of  the  correspondence  sent  to  the  comptrol- 
ler's office.  The  triplicate  invoices  should  be  transferred  to 
a  file  designated  as  "Invoices  Passed  to  Comptroller's  Office." 

When  Invoice  Is  Lacking 

If,  after  receiving  the  material,  the  original  invoice  or 
manifest  is  not  received  within  a  reasonable  time,  it  is  essential 
that  steps  be  taken  to  secure  the  invoice.  In  order  to  lessen 
the  number  of  cases  of  this  sort,  all  stores  keepers  should  pre- 
pare on  the  first  of  January,  April,  July,  and  October  a  list  of 
such  invoices  as  they  should  have  passed,  but  which  they  have 
not  yet  received.  For  this  they  should  use  Form  94,  "Report 
of  Uninvoiced  Material." 

This  list  should  cover  all  material  received  up  to  one 
month  prior  to  the  date  of  the  report.  After  everything  pos- 
sible has  been  done  to  obtain  the  missing  invoices,  lists  should 
be  forwarded  to  the  comptroller's  office  where  further  steps 


208 


"OUTSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
REPORT  OF  UNINVOICED  MATERIAL 
STOREROOM 191 


To  the  Comptroller: 

The  following  material  has  been  received  to  (date) 
191 ....  for  which  I  have  no  original  invoice. 


Req'n      Order     Date  Material 

No.         No.      Rec'd      From  Whom  Purchased  Amount       Remarks 


Stores   Keeper. 


NOTE — This  report  to  be  sent  in  the  first  of  Jan.,  Apr.,  July, 
and  Oct.  and  must  include  all  material  received  one  month  prior 
to  date  of  report.  All  uncleared  items  on  previous  statements 
should  be  brought  forward.  If  nothing  to  report  send  the  form 
in  marked  "None."  If  the  Stores  Keeper  has  received  the  tripli- 
cate invoice  but  not  the  original,  he  shall  note  "Triplicate  Rec'd" 
in  remarks  column. 


Form  04.    Report  of  Uninvoiced  Material.    Size,  8^2  X  uy2. 

will  be  taken  to  obtain  the  invoices  and  have  them  paid.  This 
will  tend  to  reduce  the  items  which  appear  on  the  annual 
inventories  as  "Exhibit  B." 


Monthly  Report  of  Invoices  Passed 

After  all  other  monthly  reports  have  been  made  out,  a 
monthly  report  of  invoices  passed  should  be  prepared  on  Form 
95.  This  is  a  list  showing  all  invoices,  freight  charges,  etc., 
charged  during  the  month  by  the  division  stores  keeper  to  the 
General  Stores  account. 

This  report  will  be  reconciled  in  the  comptroller's  office 
with  the  list  of  invoices  actually  vouchered  during  the  month, 
and  a  notice  will  be  returned  to  the  division  stores  keeper,  who 
will  make  the  necessary  adjustments  in  his  records  and  com- 
mence the  next  month's  report  with  the  balance  as  given  by  the 
comptroller's  office. 


STORES— RECEIPT   AND    ISSUE 


209 


STORES  KEEPER'S   RECONCILIATION   REPORT 
THE  WESSEX  COMPANY 

Balance  on  hand  first  of  month 

Amount  invoices  passed  during  the  month 

Total 

Amount  issued  during  the  month 

Balance  on  hand  end  of  month 

Dept.  No. 

Date 

Vendor 

Amount 

Remarks 

Form  95.     Invoices  Passed  During  Month.     Size,  8^   X    14. 
Issue  Slips 

Issuing  material  is  the  most  difficult  part  of  the  work  of 
the  stores  department.  The  possibilities  of  confusion  and 
waste  at  this  point  are  very  great,  particularly  if  the  road  is 
organized  by  divisions  and  extends  through  different  localities. 
Every  part  of  the  procedure  outlined  below,  accordingly,  must 
be  very  carefully  observed. 

When  materials  are  wanted  from  the  storeroom  by  the 
representative  of  any  department,  an  issue  slip  or  "Foreman's 
Requisition  for  Material"  (Form  96)  is  filled  out  by  the  fore- 
man concerned,  signed,  and  presented  to  the  division  stores 
keeper. 

These  issue  slips  must  in  every  case  be  prepared  most  care- 
fully. Each  day  the  stores  keeper  should  go  over  the  slips 
which  have  been  presented  and  price  them  according  to  the 
unit  prices  shown  on  the  corresponding  stock  cards.  Care 
should  be  taken  to  have  all  columns  on  these  slips  properly 


2IO 


"OUTSIDE"   ACCOUNTING  WORK 


THE  WE.55EX  COMPANY 

FOREMAN'S  REQUISITION  FOR  MATERIAL 


.191- 


lb  Stores  Keeper.- 

Please  deliver  the  following  +o  bearer 
Oiarge  -to. 


Form  96.    Foreman's  Requisition.     Size,  7  X  354. 


tilled  out  to  show  not  only  the  quantity,  description,  and 
amount  of  the  material  chargeable  to  a  certain  account,  but 
also  the  price  of  each  article.  If  that  is  done,  a  representative 
from  the  accounting  department  will  be  able  at  any  time  to 
check  up  the  correctness  of  the  amount  charged  against  the 
various  operating  accounts  for  material  furnished. 

To  illustrate  the  above,  it  will  not  be  sufficient  for  stores 
keepers  to  show  simply: 


3  Brooms 

4l/>  tons  of  Rail 


$      75 
157.50 


But  every  slip  should  be  completed  and  carried  out  as  follows: 

3  Brooms  at  25  cents  each  $      .75 

4^  tons  of  Rail  at  $35  per  ton  157-50 

Another  point  which  must  be  insisted  upon  in  every  store- 
room is  that  of  having  all  requisition  slips  properly  signed. 
Stores  keepers  should  be  careful  to  see  that  every  requisition 
for  material  drawn  from  the  storeroom  is  signed  by  an 
authorized  party.  It  would  also  be  a  good  plan  for  the 
various  stores  keepers  to  fill  out  the  first  two  of  the  blank 


STORES— RECEIPT  AND    ISSUE  2II 

spaces  provided  at  the  bottom  of  the  requisition  slips  under  the 
word  "Delivered"  and  the  words  "Prices  and  Extension  Cor- 
rect." This  point  need  not  be  insisted  upon,  but  it  would  be 
better  to  have  those  blanks  filled  out. 

Final  Disposition  of  Issue  Slips 

The  accounts  chargeable  should  be  noted  on  the  issue  slips 
by  the  foreman  requesting  the  material.  The  quantities  issued 
should  then  be  posted  on  the  issue  side  of  the  stock  cards. 

Each  day  as  soon  as  all  the  items  on  the  issue  slips  have 
been  posted  on  the  stock  cards,  they  should  be  extended  or 
figured  as  to  total  amount.  At  the  end  of  the  month  the  issues 
should  be  sorted  as  to  accounts  chargeable  and  entered  on  the 
distribution  book  or  sheets.  This  may  be  done  during  the 
month,  if  convenient.  The  extension  of  issues,  the  posting 
in  the  distribution  book,  and  the  footing  of  the  distribution 
should  be  rechecked  by  a  second  clerk,  if  possible. 

It  is  essential  that  the  issue  slips  for  each  particular  lot  of 
material  received  should  be  priced  at  the  purchase  price  of 
each  lot.  Assuming  that  purchases  have  been  received  as  fol- 
lows and  prices,  including  freight,  were: 

ioo  at  $  .10  each 

ioo    "        .09     " 

50    "        .08     " 

the  first  hundred  issues  should  be  priced  at  10  cents  each,  the 
second  hundred  issues  at  9  cents,  and  the  next  fifty  at  8  cents. 
When  a  requisition  represents  a  quantity  which  according 
to  the  stock  card  would  appear  to  be  the  remainder  of  one  lot 
and  a  portion  of  the  next  lot,  the  requisition  should  be  priced 
and  extended  at  the  two  different  prices  and  quantities,  and 
entered  on  the  card  under  the  two  different  lots;  a  small 
bracket  reaching  to  the  date  would  indicate  that  the  requisi- 
tion of  that  date  represented  both  of  those  quantities. 


212  "OUTSIDE"   ACCOUNTING   WORK 

It  is  very  important  that  the  monthly  issues  and  balance 
be  entered  on  the  stock  cards  as  follows:  the  consumption  for 
the  month  under  the  two  columns  "Monthly  Consumption"; 
and  in  the  last  double  column  under  "Month"  and  "Quantity," 
the  balance  on  hand  at  the  beginning  of  the  following  month. 

Issuing  Material  to  Other  Divisions 

What  has  been  said  refers  to  material  issued  by  a  division 
stores  keeper  for  use  on  his  own  division.  It  frequently  hap- 
pens, however,  that  material  is  transferred  from  one  division 
to  another.  Such  issues  to  stores  keepers  on  other  divisions 
will  be  billed  through  on  the  regular  manifest  (Form  97)  and 
charged  to  the  General  Stores  account  of  the  receiving 
division.  These  manifests  are  put  up  in  books,  four  copies 
to  each  manifest. 

Treatment  of  Manifests 

The  receiving  stores  keeper  checks  the  original  copy  of  the 
manifest  as  a  receiving  memo;  the  duplicate  he  signs  and 
returns  to  the  shipper;  and  the  triplicate  he  retains  as  his  office 
record.  The  signed  duplicates  returned  from  the  receiving 
storeroom  are  taken  into  the  division  accounts  and  sent  in  with 
the  division  stores  keeper's  regular  report.  It  should  be 
understood  that  the  duplicates  sent  in  should  include  only 
those  duplicates  which  were  signed  and  returned  to  the  issu- 
ing storeroom  not  later  than  the  second  day  of  the  month  just 
closed.  All  duplicates  returned  later  than  the  second  day  of 
each  month  are  included  in  the  next  month's  report.  This 
provision  is  made  so  that  the  reports  of  the  issuing  and  receiv- 
ing stores  keepers  will  agree. 

The  forwarding  stores  keeper,  upon  receipt  of  the  signed 
duplicate  referred  to  above,  will  charge  the  storeroom  to 
which  the  material  was  issued.  The  stores  keeper  should  see 
that  he  gets  back  the  signed  duplicate  within  a  reasonable  time. 


STORES— RECEIPT  AND    ISSUE 


21 


THE  WESSEX  COMPANY 

MEMORANDUM  WAY-BILL  FROM  STORES  KEEPER  TO  AGENT  FOR  MATERIAL  FORWARDED 
ORIGINAL 

FROM TO 

FOR 


—     DATE  OF  WAY-BILL. 
_     CAR  INITIALS 


_THE_19L 


CAR  NO.. 


STORE   RECORD 

DATED I9I_ 

REQUISITION 

INVOICE  453 


DESCRIPTION  OF  ARTICLES 


Packages 
No.  of 


Reqh 


Weight 


Quantity 


INVOICE      453  Received. 

Stores  Keeper  at_ 


ttie 191  _  of  the 

'. : in  good  order  and 

condition,  the  articles  described  above  for  shipment  as  indicated. 

Agent 


THE  WESSEX  COMPANY 

|  SHIPPING  RECEIPT  AND  OFFICE  RECORD  OF  WAY-BILL  AND  INVOICE  FOR  MATERIAL  FORWARDED 
I  DUPLICATE 


FROM. 
FOR. 


STORE  RECORD 

DATED 1_I91_ 

REQUISITION 

INVOICE  453 


DESCRIPTION  OF  ARTICLES  ***3ffs|  Reo/n  | Weight  [quantity | Price  |  AMOUNT 


THE  WESSEX  COMPANY 

C0MPANT5  INVOICE  FOR  MATERIAL  FORWARDED 
QUADRUPLICATE 


Received  abw  Articles  in 
good  order 


NoteTKs  Wank  must  be  filled  out  and 
forwarded  to  tie  consignee  with  each 
shipment  and  must  be  receipted  and  re- 
turned by  him  to  the  party  shipping 
the  material. 

Note  all  discrepancies  in  weight 
or  count  in  red  ink  on  face  of  Invoice. 


We  have  shipped  this  day,  inyour 
care,  the  articles  described  abo\e 


5tores  Keeper 


Form  97.    Manifest  (in  quadruplicate).    Size,  8^_  X  ?y4.    Subject 

matter  of  triplicate  like  that  of  duplicate,  heading 

like  that  of  quadruplicate.) 


214 


"OUTSIDE"   ACCOUNTING   WORK 


No  material  should  be  charged  to  another  storeroom  until  the 
signed  duplicate  has  reached  the  issuing  stores  keeper. 

The  issuing  stores  keeper  will  not  charge  the  receiving 
stores  keeper  until  he  has  obtained  a  receipt  for  the  material. 
He  should  bear  in  mind,  moreover,  that  when  material  is 
charged  to  other  divisions  it  should  be  charged  at  exactly  the 
same  rate  at  which  he  charges  his  own  division;  nothing 
should  be  added  for  labor  or  other  charges  in  connection  with 
the  transfer,  except  in  special  cases  of  large  shipments  of  rails 
or  similar  material. 

On  those  divisions  which  have  no  storeroom  accounts  the 
same  procedure  will  be  followed,  excepting  that  the  list  of 
material  received  should  show  on  it  the  distribution  to  the 
proper  accounts  the  same  as  any  other  invoice. 

When  issue  slips  have  served  their  purpose  they  should  be 
bound  or  put  up  in  packages  and  carefully  filed. 

Monthly  Reports  of  Material  Issued 

The  issue  slips  are  summarized  at  the  end  of  each  month 
on  large  classification  sheets  (Form  98),  under  the  proper 
account  numbers  according  to  the  Interstate  Commerce  Com- 


Classification  of 

THE  WESSEX  COMPANY 

Month  of 

Nn 

No 

No 

No 

No 

No 

A 

| 

f 

No 

/ 

( 

\ 

I 

E 


Form 


Classification  Sheet  of  Material  Issued.    Size.  21  X  16. 


STORES— RECEIPT   AND   ISSUE 


215 


THE  WESSEX  COMPANY 

This  Report  to  be  mailed  to  the  Comptroller  on  or  before  tfie9*of  each  month 

Report  of  Material  Issued  from  Storeroom 

A+-  .                                                                                   Di  irinn  Mnnth  nf 

NOTE  -  Details  of  Accounts  marked  *  should  be  shown  on  separa'e  report,  as  per  instructions. 

NO. 

NAME 

AMOUNT 

NO 

NAME. 

AMOUNT 

I  -  WAY  AND  STRUCTURES 

Total  Brought  Forward 

1 

Supt.  of  Way  and  Structures 

IV- CONDUCTING  TRANSPORTATION 

2 

Ballast 

63 

Supt.  of  Transportation 

3 

Ties 

67A 

Misc  Car  Service  Expenses  Pass.  Dept 

4 

Rails 

678 

••       ••        ••            "      Express   " 

5 

Rail  Fastenings  and  Joints 

69* 

Station  Expenses  Pass  Dept 

6 

Special  Work 

59B 

•    "                "          Express  Dept. 

9 

Misc.  Track  and  Roadway  Expenses 

71 

Carhouse  Expenses 

10 

Pavinq 

72 

Operation  of  Signal  S  Interlocking  App. 

11 

Cleaning  and  Sanding  Track 

~3 

"  Telephone  STelegraph  Lines 

:■? 

Removal  of  Snow  and  Ice 

78 

Other  Transportation  Expenses 



II -MAINTENANCE  OF  EQUIPMENT 

V- TRAFFIC 

29 

Supt.  of  Equipment 

79 

Superintendence  and  Solicitations 

30 

Passenger  &  Combination  Cars 

=:> 

Advertising 

30 

-OtberDiv 

81 

Parks,  Resorts  and  Attractions 

31 

Freight,  Express  and  Mail  Cars 

8: 

Miscellaneous  Traffic  Expenses 

III-  POWER 


VI  -  GENERAL  AND  MISCELLANEOUS 


Supt  of  Power 


Gen'l  Office  Supp.and  Exp  Pass.  Dept. 


Fbwer  Plant  Bldq.  Fixtures  S  Grounds 


"       Express  Dept. 


fbwer  Plant  and  Equipment 


Misc.  Gen'l  Expenses  Pass  Dept. 


Substation  Equipment 


Express  Dept. 


58    5ubstation  Supplies  and  Expenses 


Electric  Light  Department 


Gas  Light  Department 


Authorisations 


General  Stores,  Other  Div. 


C&D.  Recollectible 


Total  Carried  Forward 


Grand  Total 


Approved : 


Correct 


Manager 


Storeroom  Clerk 


Form  99.     Report  of  Material  Issued  from  Storeroom. 
Size..  81/,  X  14. 


2l6 


'OUTSIDE"   ACCOUNTING  WORK 


mission's  uniform  system  of  accounts.  A  small  columnar 
book  may  be  used  instead  of  the  classification  sheets. 

As  soon  as  these  sheets  are  totalled  for  each  month,  the 
figures  are  drawn  off  on  the  monthly  report  of  materials 
issued  (Form  99),  which  should  be  forwarded  promptly  to 
the  comptroller's  office,  as  called  for  on  the  form  itself. 

This  form  is  printed  in  copying  ink  so  that  an  impression 
copy  can  be  made.  On  it  should  appear  the  total  amount 
of  issues  from  the  division  storeroom.  It  will  be  noted  that 
wherever  any  of  the  accounts  are  subdivided  or  are  charge- 
able to  other  divisions,  they  are  marked  with  a  star.  All  such 
accounts  should  be  shown  in  detail  on  Form  100.   Here  should 


THE  WESSEX  COMPANY 

pofail  nf  ^nrprnnm  Pppnrt  -  Vlnn+h  FnHinq 

Division                                            .    - 

r 

Total 
Amount 

I 

U- 

1 

— 

~~          '       — '         

— ) 

Approved: 

C 

orrect 

Storeroom  Clerk 

Form  100.     Detail  Report  of  Material  Issued  from  Storeroom. 
Size,  8y2  X  14. 


appear  the  number  and  name  of  the  account  chargeable  and 
the  name  of  the  division;  the  amount  chargeable  to  each  divi- 
sion should  be  entered  in  one  of  the  short  columns,  carrying 
the  total  for  each  division  out  into  the  last  column.  If  this  is 
done  the  amounts  appearing  in  the  column  headed  "Total 
Amount"  on  Form  100  will  equal  the  amounts  appearing 
under  the  respective  accounts  on  Form  99  which  are  charge- 
able to  other  divisions  or  to  the  subdivided  starred  accounts. 


STORES— RECEIPT   AND   ISSUE 


217 


Shop  Orders 

At  times  material  is  received  for  which  it  is  necessary  to 
complete  certain  unfinished  work  in  one  of  the  shops.  It  is 
important  that  such  work  be  done  on  a  shop  order,  the 
charges  to  be  entered  on  the  copy  and  the  total  when  completed 
entered  on  the  stock  card.     Form  10 1  shows  such  an  order. 


THE  WESSEX  COMPANY 

ORIGINAL 
SHOP  DPDFP  NO 

Mr 

19 

Plca=,f                                a=i 

FolloWS: 

' — ~- ' 

n  a=a 

OATF    CnMPl  FTFD 

iNvnirF  no 

MATERIAL 

LABOR 

Description 

Date 

Ticket 
No. 

On 
Dept. 

Quanfy 

Amount 

Date 

Ticket 
No 

Hours 

Amount 

Total 

, 

■ 1 

1 = 

THIS  COPY  TO  GO  TO  THE  RDREMAN  PERFORMING  THE  WOR* 

Form  101.     Shop  Order.     Size,  8J/2  X  16. 


These  orders  should  be  numbered  and  prepared  in  quadru- 
plicate. The  original  is  given  to  the  division  manager ;  the  trip- 
licate to  the  master  mechanic ;  the  second  and  fourth  copies  are 
retained  by  the  division  stores  keeper.  When  the  order  has 
been  rilled  the  master  mechanic  should  return  his  copv,  show- 
ing the  cost  of  the  labor.  To  determine  the  unit  price  the  cost 
of  materials  is  added  to  the  cost  of  labor  and  the  number  of 
items  divided  into  the  total.  Upon  the  completion  of  the  work 
these  entries  should  be  made  on  the  stock  card:   (1)  made  on 


2l8 


"OUTSIDE"   ACCOUNTING   WORK 


shop  order  No ;  (2)  date  received;  (3)  quantity;  (4) 

price  per  unit.    The  shop  order  should  then  be  filed. 

Issuing  Material  to  Outsiders 

Where  material  is  sold  to  other  companies  or  to  outside 
parties,  as  sometimes  happens,  it  is  desirable  to  render  bills 
promptly.  Information  should  be  furnished  the  comptroller's 
office,  therefore,  in  a  report  on  the  7th,  14th,  21st,  and  last 
day  of  each  month,  on  Form  102.  This  detail  report  should 
give  a  list  of  the  charges  that  the  division  stores  keeper  has 
to  pay  and  sufficient  detail  to  enable  a  bill  to  be  rendered  intel- 
ligently in  the  comptroller's  office,  supposing  the  work  to  have 
been  finished.  After  each  item  notation  should  be  made  to 
indicate  whether  the  bill  is  final  or  not. 

A  copy  of  this  report  should  be  retained  in  the  office  of 
the  division  stores  keeper.  At  the  end  of  the  month  when  the 
regular  storeroom  report  (Form  99)  is  sent  in,  it  should  show 
in  the  lower  right-hand  corner  under  "C.  &  D.  Re-collectible" 
the  total  of  the  four  period  reports  on  Form  102  that  have  been 
sent  in  during  the  month,  which  will  be  credited  in  the  comp- 
troller's office  in  the  usual  manner  to  the  General  Stores 
account,  that  is,  as  the  bills  are  made  up. 


THE  WESSEX  COMPANY 

Detailed  List  Charges  -  Week  Ending 

Division 


To+al 
Amount 


Approved: 

C 

orrect: 

5tores  Keep* 

Form    102.      Charges    for    Material    Issued   to    Outside    Parties. 
Size,  8y2  X  14. 


CHAPTER    XIV 

THE   STORES    DEPARTMENT  —  CARE    OF   STOCK 
AND    INVENTORIES 

Care  of  Material  in  Stock 

This  matter  is  almost  as  important  and  as  full  of  possible 
difficulties  as  the  procedure  with  regard  to  receiving  and  issu- 
ing of  material,  particularly  in  a  road  organized  by  divisions, 
where  from  the  necessity  of  the  case  purchases  cannot  all  go 
through  the  one  general  storeroom. 

In  the  first  place  it  is  a  very  useful  practice  for  division 
stores  keepers  to  make  a  periodical  test,  checking  all  stock  on 
hand  with  the  balances  as  shown  at  the  end  of  the  month  on 
the  stock  cards — that  is  to  say,  a  sort  of  informal  inventory. 
It  would,  of  course,  entail  much  time  and  work  to  try  to  check 
up  the  entire  stock-room.  The  stock  cards,  therefore,  should 
be  divided  into  three  or  four  lots,  according  to  the  size  of  the 
division,  checking  one  lot  one  month,  the  second  lot  the  next 
month,  etc. 

Not  infrequently  there  will  be  cases  where  material  has 
been  issued  but  returned  to  stock  later  on  as  fit  for  further 
use.  When  material  is  to  be  so  returned  to  the  storeroom,  a 
credit  slip  or  memorandum  (Form  103)  should  be  used. 
These  slips  should  then  be  posted  on  the  stock  cards  as  a 
credit  to  material  issued,  and  should  show  as  a  credit  on  the 
monthly  classification  or  summary  of  issues.  If  the  material 
to  be  taken  back  into  stock  consists  of  a  large  quantity,  or  if  it 
is  material  left  over  from  an  authorization  job  (see  page  229), 
a  report  should  be  made  out  and  forwarded  to  the  comptroller, 

219 


220 


'OUTSIDE*'   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
FOREMAN'S  SCRAP  AND  UNUSED  MATERIAL 
CREDIT  TICKET 

19.... 

TO  STORES  KEEPER: 

Quantity 

4) 

Description             c 

Weight 
or   Measure 

Price 

Amount 

09 

z 

■a 

c 
o 

V 

CO 

o 

Z 

o 
Q 

Received:     Prices  and  extensior 

s  correct:          Signed: 

Foreman. 

Form  103.     Scrap  Credit  Ticket.     Size,  7  X  2TA- 

showing  quantity,  description,  and  the  proper  account  to  be 
credited.  It  is  desirable  that  the  division  stores  keepers  make 
an  investigation  each  month  to  locate  any  such  material  that 
the  foreman  may  have  overlooked.  A  credit  memorandum 
should  be  filed  with  the  issue  slips  at  the  end  of  each  month. 

Care  of  Material  Outside  the  Storeroom 

It  is  a  well-known  fact  that  stores  keepers  encounter  more 
or  less  trouble  in  keeping  accurate  record  of  the  larger  mate- 
rials, such  as  ties,  rails,  poles,  etc.,  used  by  the  track  and  line 
service,  and  of  the  material  purchased  for  authorization  work, 
which  is  often  kept  outside  the  storeroom.  The  stores  keeper 
is  more  or  less  obliged  to  accept  the  issue  slips  turned  in  by 
the  different  foremen  covering  material  used  each  day  as 
being  correct,  when  often  they  are  not  correct;  and  incorrect 


CARE   OF   STOCK— INVENTORIES  22I 

charges  are  accordingly  made  to  the  several  classes  of  mate- 
rial, and  frequently  to  operating  expenses  or  to  authoriza- 
tions. As  a  result,  large  adjustments  must  be  made  at  some 
later  date  when  the  discrepancy  is  discovered,  and  in  many 
cases  after  the  authorizations  have  been  closed. 

To  lessen  this  difficulty  the  stores  keeper  should  inventory 
material  of  this  nature  on  the  31st  of  October  each  year.  This 
day  practically  terminates  the  season  when  most  of  the  work 
in  which  this  material  is  used  is  done  and  the  supply  of  such 
materials  will  be  at  its  lowest.  These  inventories  may  then 
be  compared  with  the  stock  card  records  and  any  differences 
investigated  and  adjusted. 

Freight  Bills  Stamped  by  Stores  Keepers 

In  order  to  be  uniform  in  the  method  of  indicating  on 
freight  bills  sent  to  stores  keepers  the  information  needed  to 
determine  the  disposition  of  the  charges  in  the  accounts,  the 
instructions  of  this  and  the  following  section  should  be 
observed. 

The  freight  bills  are  sent  from  the  comptroller's  office  to 
the  stores  keeper,  so  that  he  can  indicate  on  the  back  of  the 
bill  the  account  chargeable,  the  order  and  requisition  numbers, 
the  name  (and  address,  if  "re-collectible")  of  the  shipper,  the 
terms  under  which  the  material  was  ordered,  that  is,  "Point 
of  Shipment"  or  "F.  O.  B.  Destination,"  and  also  in  what 
month  the  bills  are  to  be  taken  up. 

In  cases  where  shippers  should  have  paid  the  freight  on 
some  goods  consigned  to  the  company  but  neglected  to  do  so, 
the  stores  keeper  is  required  to  mark  on  the  back  of  the  freight 
bill  the  name  and  address  of  the  shipper,  so  that  a  bill  can  be 
made  out  and  the  amount  due  for  freight  charges  can  be  duly 
collected. 

The  stores  keeper  should  be  provided  with  three  stamps 
reading  "Point  of  Shipment,"   "F.   O.   B.   Destination,"  and 


222  "OUTSIDE"   ACCOUNTING   WORK 

"Invoice  Not  Received."  After  comparing  the  freight  bill 
with  the  original  invoices,  as  all  indorsements  are  to  be  made 
on  the  strength  of  the  original  invoice  only,  he  should  mark 
them  with  one  of  these  stamps.  In  no  instance  are  freight  bills 
to  be  held  over  ten  days.  If  it  is  found  after  a  lapse  of  ten 
days  that  the  original  invoice  has  not  been  received,  the 
freight  bill  should  be  stamped  "Invoice  Not  Received."  It  is 
not  necessary  to  mark  the  bills  as  chargeable  to  some  outside 
party,  as  the  comptroller  will  bill  the  shippers  on  all  freight 
bills  stamped  "F.  O.  B.  Destination." 

There  are  times  when  a  consignment  is  sent  forward  and 
terms  are  "F.  O.  B.  Line  of  Road."  In  any  such  instance  the 
freight  bill  should  be  marked  accordingly  and  the  place  given 
as  the  same  from  which  the  shipment  originated,  in  order  that 
the  comptroller's  office  may  know  just  how  to  handle  the 
freight  bill. 

In  order  that  the  local  stores  keeper's  report  of  freight 
bills  charged  to  General  Stores  account  during  a  certain 
month  may  correspond  with  the  records  in  the  comptroller's 
office,  the  comptroller  should  arrange  to  send  him  a  list  on  the 
first  day  of  each  month,  showing  the  numbers  on  freight  bills 
charged  to  General  Stores  account  during  the  previous  month. 
The  stores  keeper  should  keep  a  record  of  all  freight  bills 
passed,  and  thus  it  will  not  be  difficult  for  him  to  ascertain  the 
total  amount  of  freight  bills  to  be  taken  into  his  General 
Stores  account  each  month. 

When  to  Charge  Transportation,  Etc.,  to  General  Stores 

Bills  covering  freight  charges,  cartage,  etc.,  and  pay-roll 
charges  covering  any  loading,  inspecting,  and  handling  of 
materials  and  supplies  for  general  stores,  should  be  charged  to 
General  Stores  provided  the  amount  is  sufficient  to  increase 
the  unit  price  of  the  material  by  at  least  one  cent.  When  the 
amount  is  not  sufficient  to  increase  the  unit  price  by  one  cent, 


CARE   OF   STOCK— INVENTORIES 


223 


the  bills  and  pay-roll  charges  should  be  charged  to  those 
operating  expense  accounts  which  are  most  likely  to  be 
affected  by  the  material  in  question. 

The  bills  covering  freight  and  cartage  should  be  approved 
by  the  division  stores  keeper  when  charged  to  General  Stores 
and  by  the  division  manager  when  charged  to  Operating 
Expenses. 

Charges  from  the  pay-roll  should  be  arranged  for  with  the 
division  stores  keeper  in  advance  so  that  he  may  determine 
whether  or  not  they  should  be  charged  to  General  Stores. 
Stores  keepers  should  be  advised  promptly  each  week  of  the 
amount  charged  to  General  Stores  by  any  person  who  has 
been  authorized  to  make  such  charges.  When  more  than  one 
kind  of  material  is  being  handled,  the  party  advising  the 
stores  keeper  should  state  how  much  is  charged  to  each  kind 
of  material. 

The  division  stores  keeper  should  add  the  various  items 
referred  to  above  to  his  unit  price  of  material,  and  when  issu- 
ing that  material  or  making  an  inventory  of  it,  should  report 
it  at  a  price  which  includes  invoice  price,  freight,  cartage,  and 
labor — that  is,  inspecting,  loading,  etc. — in  accordance  with 
the  above  plan. 

The  freight  and  cartage  bills  when  charged  to  General 
Stores  will  be  included  in  the  list  of  invoices  passed  in  the 
usual  way,  each  bill  being  listed  separately  so  that  it  can  be 
returned  for  checking  up  in  the  comptroller's  office  when  the 
"reconciliation  report,"  or  summary  of  debits  and  credits 
against  the  storeroom,  is  made  up. 

The  labor  charges  are  included  in  the  list  of  invoices 
passed  as  pay-roll  charges. 

Report  of  Scrap  Accumulated 

A  very  important  matter  is  the  disposition  of  scrap,  that  is 
to  say,  material  which  cannot  be  utilized  again.    With  a  large 


224 


"OUTSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 
REPORT  OF  OLD  MATERIAL 

No 191.... 

To  the  General  Stores  Keeper: 

Sir: — The  old  material  below  named  we  have  no  use  for 
in  this  department: 

Previously  Reported 
No  Disposition  Received 

Additional 

Accumulations 

This   Month 

Description 
of    Material 

Where 
Located 

Date   |    Quantity 

(Signature ) (Official  Title) 

Note — Reports  will  be  made  on  this  form  only  by  Heads 
of  Departments,  or  such  officers  as  they  shall  designate,  and 
must  be  forwarded  on  the  first  of  each  month,  and  at  no 
other  time  during  the  month,  unless  unavoidably  necessary. 
The  quantity,  kind  of  material,  and  where  located  should 
be  fully  and  definitely  stated. 

Approved 


Form   104.  Division  Report  of  Scrap.     Size,  Sy2  X   11. 

street  railway  company  there  will  be  a  very  considerable 
amount  of  such  scrap  material  which  is  collected,  accounted 
for,  and  sold  once  a  month  or  so  for  what  it  will  bring.  It 
should  be  reported  by  the  division  stores  keepers  to  the  gen- 
eral stores  keeper  once  a  month  on  Form  104,  "Monthly  Scrap 
Report."  This  report  is  prepared  in  duplicate ;  the  original  is 
forwarded  to  the  comptroller  and  the  duplicate  is  retained  for 
the  division  stores  keeper's  files.  The  report  should  show  the 
quantity   (estimated  if  not  known)   of  every  kind  of  scrap 


CARE   OF   STOCK— INVENTORIES 


225 


material  accumulated  during  the  month  and  received  from 
other  divisions.  From  this  total  the  amounts  sold  and  trans- 
ferred during  the  same  period  should  be  deducted,  leaving  the 
balance  on  hand  as  of  the  last  day  of  the  month.  The  prices 
at  which  these  reports  will  be  figured  are  furnished  by  the  gen- 
eral stores  keeper  monthlv.  Each  item  should  be  extended  so 
as  to  show  the  total  estimated  value  of  scrap  accumulated  dur- 
ing the  month,  regardless  of  whether  it  has  been  shipped  to 
the  general  stores  keeper,  or  sold  to  outside  individuals,  or  is 
still  on  hand.  It  should  not  include  any  scrap  listed  on  the 
previous  month's  report. 

On  the  same  report  a  detail  should  be  shown  of  the  scrap 
accumulated  and  the  scrap  received  from  other  divisions  dur- 
ing the  month  as  follows: 


Kind  of 
Scrap 


Amount 
Tons  or 
Pounds 


Price 
Per  Ton 
or  Pound 


Total 
Value 


Credit 


Division     Account 


Remarks 


The  quantities  collected  should  be  determined  by  actual 
weight  as  far  as  possible,  especially  in  the  case  of  scrap  cop- 
per or  brass.  Scrap  iron  and  steel  as  a  rule  must  be  estimated. 
Great  care  should  be  exercised  to  obtain  as  nearly  as  possible 
a  correct  figure,  thus  reducing  to  a  minimum  the  amount  of 
adjustment  needed  after  each  particular  lot  is  sold. 

One  of  these  reports  should  be  sent  in  each  month  by 
every  division  stores  keeper,  whether  any  scrap  is  accumu- 
lated or  not.  All  information  called  for  on  the  blank  should 
be  furnished  and,  if  anything  is  not  clear,  it  should  be  taken 
up  with  the  comptroller's  office.  A  report  should  be  made  as 
soon  as  possible  after  the  first  of  the  month,  and  received  at 


226  "OUTSIDE"  ACCOUNTING  WORK 

the  main  office  not  later  than  the  tenth  of  the  month.  (For 
further  discussion  of  the  treatment  of  scrap,,  see  Chapter 
XVIII.) 

Inventories 

The  subject  of  inventories  might  be  treated  at  length. 
There  are  many  varying  ideas  in  regard  to  the  relative  merits, 
for  example,  of  perpetual  or  running  inventories  as  compared 
with  periodical  inventories.  No  one  disputes,  however,  that  an 
inventory  of  all  materials  and  supplies,  in  fact,  of  all  movable 
things,  should  be  taken  at  least  once  a  year.  This  matter  will 
be  treated  further  in  connection  with  Chapter  XXIV.  For 
the  purposes  of  this  book  the  periodical  inventory  will  be  the 
only  one  discussed. 

The  following  outline  contains  the  substance  of  instruc- 
tions from  the  comptroller's  office  to  the  division  stores  keep- 
ers as  to  the  methods  to  be  observed  in  taking  the  annual 
inventory  of  general  stores  of  materials  and  supplies: 

i.  Inventories  of  all  materials  and  supplies,  including  not 
only  the  storeroom  stock  and  the  stock  of  rails,  ties,  etc.,  car- 
ried outside,  but  also  an  inventory  of  spare  equipment  stock 
and  spare  material  in  the  shops,  should  be  taken  on  a  certain 
date. 

2.  The  inventory  will  be  made  up  on  Form  105.  Mate- 
rials will  be  inventoried  in  their  regular  classes  in  accordance 
with  instructions  issued  by  the  general  stores  keeper.  The 
inventory  must  be  taken  by  actual  count,  weight,  or  measure, 
and  must  be  a  complete  survey  of  all  materials  and  supplies. 
The  general  inventory  above  described  should  not  include 
spare  equipment,  i.e.,  stock  which  has  been  charged  out  but  not 
yet  used,  or  second-hand  equipment,  i.e.,  scrap.  Inventories  of 
these  two  kinds  of  material  should  be  taken  on  separate  sheets 
and  not  mixed  in  any  way  with  the  inventory  of  the  regular 
stock. 


CARE   OF    STOCK— INVENTORIES 


227 


THE  WESSEX  COMPANY 

Sheet  Net 

.W^nWy  /-if                                           M»+^riak  anH  Supplies  on  VwdH                                                191 
Department                                                                 Division 

CLASS  OF  MATERIAL  AND  DESCRIPTION 

QUANTITY 

UNIT 

PRICE 

AMOUNT 

TOTAL 

1 

Certified  to  be  a  true  and  correct  Inventory 

Footings  not  to  be  carried  forward 

Form  105.    Inventory  Form.    Size,  8^2  X  11. 

If  possible,  all  inventories  should  be  typewritten  and  two 
copies  made;  the  original  should  be  sent  to  the  comptroller's 
office  and  the  carbon  retained  by  the  division  stores  keeper  or 
sent  to  the  general  stores  keeper  as  instructed  by  him. 

3.  All  materials  noted  on  Form  93  as  having  been 
received  prior  to  the  date  of  the  inventory,  but  for  which  no 
invoice  has  been  received,  should  be  listed  on  separate  sheets 
and  marked  "Exhibit  B."  This  exhibit  should  show  the  date 
when  each  article  was  received,  where  from,  the  quantity, 
description,  price,  and  account. 

4.  All  material  in  transit  at  the  end  of  the  month,  from 
another  storehouse  or  division,  should  be  taken  into  the 
accounts  for  that  month  and  included  in  the  inventory. 

5.  All  reports  of  inventories  should  be  received  in  the 
comptroller's  office  within  two  or  three  weeks.  Extra  help 
will  be  provided,  if  necessary,  to  insure  the  inventory  being 
sent  in  on  this  date.      All  applications  for  such  extra  help 


22g  "OUTSIDE"   ACCOUNTING  WORK 

should  be  made  direct  to  the  comptroller.  Inventories  should, 
of  course,  be  forwarded  as  soon  as  completed  and  as  much  in 
advance  of  the  date  specified  as  possible. 

6.  Each  inventory  must  be  signed  personally  by  the  party 
taking  it,  and  certified  to  by  the  stores  keeper  of  the  division 
where  the  inventory  is  being  taken.  The  division  stores 
keeper  will  also  sign  a  regular  certificate  which  will  be  pro- 
vided from  the  main  office. 

7.  As  for  the  inventory  of  spare  equipment  and  second- 
hand material,  it  would  seem  best  to  have  that  taken  by  the 
master  mechanic  and  then  priced  and  typewritten  by  the  divi- 
sion stores  keeper.  The  inventory  of  scrap  material,  how- 
ever, should  be  taken  by  the  division  stores  keeper. 

8.  The  report  of  the  division  stores  keeper  showing  the 
invoices  taken  into  stock,  and  the  storeroom  balance  for  the 
month  in  which  the  inventory  is  taken,  should  be  held  until 
about  the  10th  of  the  following  month,  then  completed  and 
mailed  to  the  comptroller's  office.  This  will  greatly  assist  the 
comptroller's  office  in  checking  the  material  shown  on  the 
inventory  for  which  invoices  have  not  yet  been  received  there. 

9.  A  representative  of  the  comptroller's  office  will  be  on 
hand  to  advise  and  assist  in  taking  the  inventory. 


CHAPTER    XV 

ADDITIONS   AND    BETTERMENTS 

Necessary  Records 

Every  street  railway  does  a  great  deal  of  work  in  the  way 
of  extensions  and  improvements  or,  to  use  the  phrase  of  the 
Interstate  Commerce  Commission,  "additions  and  better- 
ments." The  company  is  constantly  relaying  track,  rebuilding 
overhead  work,  remodelling  car  houses  and  power  stations, 
and  purchasing  new  equipment  in  order  to  keep  the  property 
in  good  condition  and  to  utilize  the  latest  methods.  When  a 
piece  of  track  is  removed  it  is  usual  to  put  in  a  better  and 
heavier  rail;  when  a  power  station  is  remodelled,  to  put  in 
more  modern  machinery.  As  a  general  thing,  the  difference 
between  the  cost  of  the  old  and  the  cost  of  the  new  is  charged 
to  "Additions  and  Betterments."  It  is  very  important,  there- 
fore, to  have  a  thoroughly  good  cost  system,  or,  as  it  is  usu- 
ally called  in  the  street  railway  business,  an  "authorization 
system,"  so  that  nothing  chargeable  to  Extensions  and  Im- 
provements is  charged  to  Operating  Expenses,  and  vice  versa. 

Complete  records  should  be  kept  at  all  times  so  that  infor- 
mation as  regards  cost  per  mile  of  track,  costs  of  overhead  or 
equipment  work,  etc.,  for  either  current  or  former  years,  can 
be  obtained  on  short  notice  for  the  officers  of  the  road  or  for 
commissions.  All  extension  or  improvement  work  must 
accordingly  be  covered  by  properly  approved  authorizations. 

Authorizations 

By  the  word  "authorization"  is  meant  definite  written 
instructions  from  the  proper  officials  of  the  road  to  do  certain 

229 


230  "OUTSIDE"   ACCOUNTING  WORK 

things.  Authorizations  are  prepared  in  the  office  of  the  engi- 
neer in  charge  of  power  and  equipment,  or  of  the  engineer  in 
charge  of  construction,  or  by  the  maintenance  engineer,  as  the 
case  may  be,  and  are  approved  by  the  president  and  board  of 
directors.  The  work  may  be  done  either  by  the  engineering 
force  of  the  company  itself  or  through  outside  contractors,  but 
it  is  under  the  supervision  of  the  company's  engineers  and  in 
some  cases  also  under  the  supervision  of  the  manager  of  the 
division  where  the  work  is  done. 

The  authorization  system  serves  two  purposes:  In  the  first 
place,  by  insisting  that  no  construction  expenditure  be  under- 
taken without  an  authorization  it  insures  that  all  such  expendi- 
tures involving  a  question  of  policy  are  approved  by  the  offi- 
cial who  directs  the  policy  of  the  road.  His  approval  means 
that  he  has  authorized  not  merely  that  a  certain  amount  of 
money  be  expended,  but  that  a  certain  undertaking  shall  be 
carried  on  as  nearly  as  possible  at  an  estimated  cost.  In  the 
second  place,  it  enables  the  accounting  department  to  group 
readily  all  the  expenditures  under  each  different  undertaking 
so  that  the  records  may  show  exactly  what  each  undertaking 
costs.  Thus  it  aids  in  preventing  improper  charges  being 
made  to  construction. 

Definite  Limitations 

An  authorization  covers  certain  specific  things  which  it  is 
estimated  will  cost  a  certain  amount  of  money.  An  authoriza- 
tion, say  for  $10,000,  for  double-tracking  a  certain  line,  should 
not  be  charged  with  any  expense  for  relaying  the  existing 
single  line  unless  the  authorization  stated  that  the  existing 
line  was  to  be  relaid. 

When  the  division  manager  is  requested  by  the  engineers 
in  charge  to  do  certain  work  under  the  authorization,  charges 
are  accepted  for  that  work  subject  to  the  engineer's  approval. 
The  division  manager  should  not  undertake  to  do  any  work 


ADDITIONS   AND    BETTERMENTS 


231 


or  make  any  charges  against  an  authorization  outside  of  the 
work  he  has  thus  been  requested  to  do  without  submitting  the 
matter  to  the  engineer  in  charge  for  his  consideration. 

When  a  new  line  has  been  built  and  the  division  manager 
believes  that  some  tools  or  other  facilities  should  be  furnished, 
he  should  first  ask  the  engineer  if  the  authorization  provides 
for  them.  If  not,  he  should  request  a  new  authorization  for 
what  he  needs.  The  engineers  are  held  responsible  for  the 
expenditures  under  an  authorization  and  in  justice  to  them 
no  charges  should  be  made  without  their  approval. 

Authorization   Material 

Invoices  covering  material  which  has  been  taken  into  Gen- 
eral Stores  account  and  which  it  is  not  proposed  to  use  imme- 
diately, even  though  it  is  intended  for  use  under  an  authoriza- 
tion, should  be  handled  by  the  division  manager,  charged  to 
General  Stores,  and  forwarded  to  the  comptroller's  office. 
The  engineer  who  has  charge  of  the  work,  however,  should  be 
informed  that  this  material  has  been  received. 

The  stores  keeper  should  send  a  memorandum  at  the  end 
of  each  month  to  the  official  in  charge  of  each  authorization, 
giving  the  amount  charged  against  that  authorization  for 
material  issued  from  stores  during  the  month,  also  stating  the 
number  and  title  of  the  authorization  and  the  amount  charged 
to  each  account  under  it.  With  this  there  should  be  a  list 
showing  what  the  material  consisted  of.  This  applies  to  all 
authorizations  which  are  under  the  care  of  any  of  the 
engineers. 

Pay-Roil  Charges 

Charges  from  the  pay-roll  in  connection  with  authoriza- 
tions should  be  charged  on  the  pay-roll  distribution  in  the 
usual  way  (see  page  192).  A  report  should  be  made  each 
week  to  the  official  in  charge  of  the  authorization,  showing 


232 


"OUTSIDE"   ACCOUNTING   WORK 


the  amount  charged  from  pay-roll  distribution  against  that 
authorization,  the  number  and  the  title  of  the  authorization, 
and  the  amount  charged  to  each  account  thereunder  for  that 
week.  The  nature  of  the  work  done  should  be  stated  also, 
not  necessarily  giving  the  names  of  the  men,  the  rates,  and 
amount  of  pay,  but  stating  briefly  what  work  the  charges 
represent.  For  instance,  if  the  work  happens  to  be  hauling 
rails,  the  amount  should  be  charged  to  the  proper  account  sim- 
ply as  hauling  rails  to  such  and  such  a  point.  The  engineer 
supervising  the  work  can  thus  pass  intelligently  on  the  charges. 
In  reporting  charges  against  authorizations  to  the  comp- 
troller's office,  both  number  and  title  should  always  be  men- 
tioned, otherwise  there  is  chance  of  serious  error. 


THE  WESSEX  COMPANY 


.191. 


To  Be  Accompanied   By  Detailed   Estimate  and  Sketch  on   Face  of 
Form  or  Separate  Plan  of  Proposed   Improvement. 

Department  No Comptroller's  No 

Authority  is  asked  for  the  expenditure  of  $ 

on  the  following  work. 

Title 

Location 

Description 

Necessity  for  proposed  work. 

(State  Saving   in  Dollars,  Etc.,  as  Far  as  Possible) 


Charge  to  other  corporations  and  individuals 


Maintenance    Engineer 
Chief   Engr.  of   P.  and    E. 


Manager 

Approved  for  $. 

Construction    Engineer 


Board 


Vice-Pre«.   and   G.   M. 


President 


DISTRIBUTION    OF    CHARGES 

Additions   and  Betterments 

Equipment    

Operating  Expenses 

Accounts  Receivable 


Suspense  (to  be  determined  later) , 


TOTAL 


.191. 


.Comptroller 


Form  106.     Authorization  Blank.     Size,  8^2   X   13. 


ADDITIONS    AND    BETTERMENTS  233 

Preparation  of  Authorization  Forms 

For  all  work  in  the  way  of  additions  and  betterments  a 
regular  authorization  blank  should  be  prepared,  such  as  Form 
106.  This  form,  with  its  attached  papers,  should  be  prepared 
in  the  following  manner: 

1.  Every  improvement  form  should  show  clearly  on  its 
face  the  total  estimated  cost  of  a  proposed  undertaking:  the 
title  of  the  job;  the  location,  with  the  name  of  the  town,  city, 
or  borough ;  and  a  brief  description  of  what  is  to  be  done.  All 
the  information  called  for  on  the  form  should  be  given  in 
every  instance. 

2.    Every  improvement  form  should  be  accompanied  by 
the  following  data  on  sheets  of  the  same  size  as  the  forms : 

(a)  Total  estimated  cost  of  the  work,  including  inciden- 

tal expenses  classified  as  follows: 

Incidental  expenses  according  to  classification 

of  operating  expenses. 
Balance   of  cost  according  to  classification   of 

construction  and  equipment  expenditures. 

(b)  Estimated  length  of  time  necessary  to  complete  the 

work. 

(c)  Statements  showing  the  method  of  distribution,  indi- 

cating the  amount  charged  to  additions  and  bet- 
terments and  what  it  consists  of,  and  a  similar 
statement  for  amounts  charged  to  operating 
expenses.  This  is  to  enable  the  distribution  to  be 
checked  intelligently  and  should  be  so  prepared 
that  it  will  disclose  exactly  how  each  feature  of 
the  proposed  work  has  been  treated  in  the 
distribution. 

Four  copies  of  each  of  the  statements  mentioned  in  2  (c) 
above  should  be  prepared,  showing  the  title  of  the  authoriza- 
tion and  signed  and  dated  by  the  official  preparing  it. 


234  "OUTSIDE"   ACCOUNTING  WORK 

3.  Estimates  for  authorizations  should  be  classified 
according  to  the  rules  for  Additions  and  Betterments  accounts 
set  forth  in  the  Interstate  Commerce  Commission's  "Uniform 
System  of  Accounts  for  Electric  Railways." 

4.  The  Additions  and  Betterments  account  referred  to  in 
the  preceding  paragraph  should  be  charged  with  additional 
structures,  facilities,  or  equipment  not  taking  the  place  of  any- 
thing previously  existing,  and  with  the  enlargement  or 
improvement  of  existing  structures,  facilities,  or  equipment, 
or  the  proper  portion  of  the  cost  of  new  structures  or  facilities 
of  an  improved  or  higher  class  that  replace  others  previously 
existing. 

5.  Operating  Expenses  as  referred  to  in  paragraph  (2) 
should  be  charged  with  the  incidental  expenses  in  connection 
with  the  work,  such  as  keeping  tracks  in  repair  and  in  condi- 
tion for  handling  the  traffic  during  the  progress  of  the  work 
(including  the  cost  of  protecting  traffic  while  passing  over  the 
tracks)  ;  moving  and  relocating  telephone  or  telegraph  poles 
and  other  structures;  and  with  the  original  cost,  estimated,  if 
not  already  known,  of  the  structure  or  facility  replaced  or 
abandoned. 

Treatment  of  Salvage  Material 

6.  The  estimated  amount  of  salvage  represented  by  scrap 
material  or  second-hand  material  returned  to  the  storeroom 
should  be  stated  as  a  footnote,  but  the  authorization  should 
be  for  the  gross  expenditure  and  the  distribution  should  be 
prepared  on  the  assumption  that  there  will  be  no  salvage.  The 
salvage  is  all  to  be  credited  to  the  proper  operating  expense 
accounts  direct  and  not  through  the  authorization. 

7.  In  the  case  of  power  plant  and  other  machinery 
replaced  under  an  authorization  and  retired  from  service, 
when  the  old  machinery  is  still  serviceable  and  fit  for  use  its 
estimated  present  value  should  be  charged  on  the  distribution 


ADDITIONS   AND    BETTERMENTS  235 

of  the  authorization  to  an  account  which  is  described  as  the 
"Replaced  Machinery  Stock"  account  (see  page  280).  A 
statement  should  accompany  the  authorization,  enumerating 
each  item  of  machinery,  describing  it  so  that  it  can  be  readily 
identified,  and  stating  the  estimated  value  of  each  machine. 
When  the  machinery  is  actually  released  from  service  and 
stored  and  held  for  future  use  or  for  sale,  a  report  of  that  fact 
should  be  made  to  the  comptroller,  stating  the  date  when  it 
was  retired  from  service,  the  place  where  it  is  stored,  and  in 
whose  custody  it  is  held. 

Leased  Properties 

8.  If  the  company  should  operate  leased  properties  as  well 
as  owned  properties,  the  improvement  forms  covering  the 
work  done  on  property  operated  by  the  company  should  be 
divided  into  classes.  Supposing  for  illustration  that  there  are 
three  leased  lines,  the  improvement  forms  might  be  classified 
as  follows: 

A  covering  property  owned  by  the  (operating)  company 
B         "  "  "      "     "   (first  leased)      " 

C         "  "  "      "     "   (second  "  )       " 

D         "  "  "      "     "   (third     "   )       " 

E  all  equipment 

Separate  forms  should  be  used  so  that  no  authorization 
will  include  the  work  of  more  than  one  class,  if  it  can  be 
arranged. 

9.  In  preparing  the  distribution  for  the  improvement 
forms,  all  amounts  properly  chargeable  to  construction  or 
improvement  account  should  be  charged  as  follows: 

"Additions   and   Betterments,    The    

Company."  This  account  should  include  all  extensions,  addi- 
tions, and  betterments  made  to  the  property  owned  by  The 
Company. 


236 


"OUTSIDE"   ACCOUNTING  WORK 


"Additions  and   Betterments,   The    

Company."  This  account  should  include  all  extensions,  addi- 
tions, and  betterments  made  to  the  property  of  The 

Company  which  is  operated  by  the 

....  Company. 

"Equipment."  This  account  should  include  all  additions 
and  betterments  made  to  the  equipment  operated  by  The  .... 
Company. 

Notices  to  Interested  Officials 

After  the  authorization  blank  reaches  the  comptroller's 
office,  notices  should  be  sent  on  Form  107  to  the  officials 
interested. 


THE  WESSEX  COMPANY 

OFFICE    OF    THE    COMPTROLLER 
Requisition  No.         Date         Authorization  No.         Date 
Mr. 
Dear  Sir: 

You  are  hereby  notified  that  Requisition  for  a  Special 
Authorization  (your  No.  )  to  be  used  in  the  following 

Improvements,  viz: 

Has  been  Approved  by  the  Proper  Officers  in  the 
sum  of  $  Chargeable  as  follows: 

To  Operating  and  Expense  $  To  Equipment  $ 

To  Additions  and  Betterments 

The  work  to  be  done  by  Under  the  Supervision  of 

Charge  all  Expenses  to  Comptroller's  No. 
Title  of  Authorization 

In  reporting  to  the  General  Office,  the  Comptroller's 
Number  and  the  title  of  the  Authorization  must  be  given 
in  every  instance  and  charges  subdivided  in  accordance 
with  Regular  Classification. 

Comptroller. 


Form  107.   Notice  of  Approval  of  Authorization.    Size,  8^2  X  gl/2. 


ADDITIONS   AND   BETTERMENTS  237 

Distribution  of  Charges 

As  just  explained,  authorization  blanks  will  show  the  dis- 
tribution of  charges  to  either  "Additions  and  Betterments"  or 
"Additions  and  Betterments"  and  "Operating  Expenses."  If 
the  distribution  is  entirely  to  Additions  and  Betterments,  the 
monthly  expenditures  are  distributed  on  the  regular  authoriza- 
tion ledger  to  "Construction  Work  in  Progress."  If  the  dis- 
tribution of  an  authorization  is  partly  to  Additions  and  Better- 
ments and  partly  to  Operating  Expenses,  the  expenditures  for 
the  month  are  divided  proportionately  between  the  above 
accounts. 

"Construction  Work  in  Progress"  is  an  account  where  all 
charges  to  additions  and  betterments  may  be  placed  until  the 
completion  of  an  authorization.  As  soon  as  the  job  is  com- 
pleted an  entry  for  the  general  journal  should  be  made,  charg- 
ing Additions  and  Betterments — Authorizations,  and  credit- 
ing Construction  Work  in  Progress.  Then  the  charge  to  Addi- 
tions and  Betterments  should  be  distributed  to  the  various 
subaccounts  in  the  regular  construction  ledger.  The  construc- 
tion ledger  should  be  so  arranged  that  all  expenditures  may 
be  classified  as  between  the  various  construction  accounts  and 
so  summarized  that  information  can  be  obtained  at  any  time 
as  to  the  total  additions  and  betterments  by  divisions,  by  con- 
struction accounts,  or  by  years. 

Incidental  expenses  in  connection  with  authorizations,  such 
as  keeping  tracks  in  repair  and  handling  the  regular  traffic  of 
the  road  during  the  progress  of  the  work,  including  the  cost 
of  protecting  street  traffic  while  passing  over  the  tracks, 
should  be  charged  to  the  authorization,  but  subdivided  accord- 
ing to  the  classification  of  operating  expenses. 

Work  done  by  the  operating  department  for  the  construc- 
tion department  which  is  not  in  connection  with  the  operation 
of  the  line  at  all,  should  be  charged  to  the  authorization  and 
classified  according  to  the  construction  classification. 


238  "OUTSIDE"   ACCOUNTING   WORK 

In  other  words,  everything  chargeable  to  the  authorization 
except  incidental  expenses  should  be  classified  according  to  the 
construction  classification.  Incidental  expenses,  that  is,  those 
expenses  which  during  a  reconstruction  job  would  be  unneces- 
sary if  the  cars  were  not  operating,  but  which  are  necessary 
because  the  cars  are  being  operated  during  the  progress  of  the 
work,  should  be  charged  to  the  authorization  and  classified 
according  to  the  operating  expense  classification. 

Authorization  Ledger 

A  ledger  should  be  provided  somewhat  like  Form  108. 
During  the  current  working  period  all  amounts  chargeable  to 
an  authorization  for  new  work  should  be  posted  daily  to  this 
ledger  from  the  vouchers  and  journal  entries  as  they  come 
through.  Great  care  should  be  taken  with  regard  to  the  infor- 
mation in  the  "Particulars"  column.  The  explanation  must 
be  made  perfectly  clear,  so  that  anyone  will  know  exactly  what 
the  charge  is  for.  When  all  the  charges  are  in  for  the  month 
they  should  be  footed  and  an  entry  made  up  for  the  general 
journals  charging  the  proper  accounts  and  crediting  the 
account  "Authorizations  for  New  Work."  This  account  in 
the  general  ledger  should  exactly  balance  when  this  entry  is 
posted.  If  it  does  not,  the  bookkeeper  should  immediately  run 
down  the  difference. 

While  making  up  the  journal  entry  a  number  of  ques- 
tions will  probably  present  themselves,  regarding  which  the 
clerk  in  charge  should  apply  to  the  chief  clerk.  One  rule,  how- 
ever, that  may  well  be  followed  is  this:  When  the  amount 
expended  under  an  authorization  exceeds  the  amount  pio- 
vided,  all  the  excess  expenditure  should  be  charged  against 
Additions  and  Betterments.  In  other  words,  in  distributing 
the  expenditures  under  authorizations  between  Additions  and 
Betterments  and  Operating  accounts,  divide  the  expenditures, 
so  far  as  the  authorization  goes,  on  a  percentage  basis,  charg- 


ADDITIONS   AND   BETTERMENTS 


239 


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240  "OUTSIDE"   ACCOUNTING  WORK 

ing  to  Operating  Expenses  the  amount  called  for  on  the  dis- 
tribution, but  all  excess  expenditure  to  Additions  and 
Betterments. 

Authorization  Ledger  Transfer  Books 

When  authorizations  are  completed  they  should  be  trans- 
ferred from  the  current  working  authorization  ledger  to  a 
transfer  ledger.  If  there  is  a  difference  of  more  than  10% 
between  the  estimated  amount  and  the  amount  expended,  an 
effort  should  be  made  to  get  in  touch  with  the  engineer  so  that 
the  authorization  can  be  held  open,  if  necessary,  even  though 
the  work  has  been  completed.  If  the  difference  between  the 
estimate  and  the  actual  cost  is  within  10%,  the  authorization 
can  be  marked  complete  and  so  reported  on  the  authorization 
statement  at  the  end  of  the  month.  Material  differences 
should  be  taken  up  immediately  with  the  chief  clerk  so  that 
any  necessary  adjustments  in  the  accounts  can  be  made  as 
early  as  possible.  After  authorization  sheets  are  put  into  the 
transfer  ledger  no  charges  should  be  made  to  the  different 
authorizations  unless  the  charge  clearly  shows  that  it  is  for  an 
old  bill  or  something  which  should  have  been  charged  while 
the  authorization  was  active. 

Regular  invoice-size  scrap-books  make  the  best  authoriza- 
tion books.  In  these  the  various  authorities  should  be  fastened 
in  numerical  order.  The  authorization  number  and  title 
should  show  clearly  at  a  glance.  These  books,  of  course, 
should  be  kept  closely  up-to-date. 

Additions  and  Betterments  Ledgers 

Ledgers  showing  the  regular  additions  and  betterments 
accounts  should  be  provided,  to  be  written  up  each  month  and 
balanced  with  the  Additions  and  Betterments  account  as 
shown  on  the  general  ledgers.  If  the  road  has  leased  proper- 
ties, similar  records  should  be  kept  for  those. 


ADDITIONS   AND    BETTERMENTS 


241 


Authorization  Index 

This  index  should  be  written  up  immediately  on  receipt  of 
any  new  authorization  instructions.  The  index  should  be  care- 
fully divided  and  subdivided,  according  to  the  different  com- 
panies (if  there  is  more  than  one  company),  and  according'  to 
departments,  also,  and  to  divisions.  The  clerks  should  be  cau- 
tioned to  index  immediately  upon  receiving  the  numbered 
authority. 

Charges  Against  Other  Companies 

It  may  sometimes  happen  that  an  authorization  has  to  be 
made  up  in  connection  with  power  station  work,  which  is  to 
be  paid  in  part  by  the  operating  company  and  in  part  by  some 
other  company.  A  good  general  plan  to  follow  in  such  a  case 
is  to  have  the  authorization  made  in  the  name  of  the  company 
which  is  bearing  the  major  portion  of  the  expense  and  to 
handle  the  amount  chargeable  to  the  second  company  through 
a  bill  or  charge  account. 

When  the  proportion  collectible  from  the  second  company 
is  small,  the  simplest  way  to  handle  the  matter  is  to  wait  until 
the  authorization  is  completed  before  billing  the  second  com- 
pany and  then  to  make  a  bill  for  the  full  amount. 

Certain  authorizations,  however,  may  involve  heavy 
charges  against  the  second  company,  charges  which  sometimes 
must  go  to  that  company's  "Operating  Expense"  account.  In 
such  cases  it  would  be  best  to  prepare  a  bill  each  month.  The 
matter  should,  of  course,  be  determined  in  advance  in  every 
case.  The  second  company  is  not  usually  billed  with  a  propor- 
tion of  every  expenditure  on  the  authorization,  but  merely 
with  its  proper  proportion  of  the  expenditure  under  those 
accounts  by  which  it  is  affected. 

In  order  that  the  second  company  may  keep  a  record  of 
the  expenditures,  a  memorandum  sheet  may  be  opened  in  its 
own  authorization  ledger,  if  this  is  kept  in  the  office  of  the 


242 


"OUTSIDE"   ACCOUNTING  WORK 


operating  company.  In  this  ledger  the  authorization  number 
is  recorded  and  the  amount  of  the  bill  from  the  operating 
company  is  also  given  and  distributed  like  any  charge  to  the 
authorization.  A  memorandum  should  be  prepared  for  all 
such  authorizations,  showing  the  proportion  of  each  account 
which  should  be  charged  against  the  second  company. 

There  may  be  other  authorizations  the  expenditures  in 
connection  with  which  are  to  be  re-collected  from  some  other 
source,  either  from  a  city  or  town,  or  from  individuals.  A  bill 
should  be  made  as  soon  as  the  authorization  is  closed  unless 
there  is  some  notation  to  the  contrary. 

Completed  Authorizations 

When  authorizations  are  physically  complete  the  comptrol- 
ler's office  should  be  notified  by  the  proper  person.  Then, 
after  the  engineers  have  been  consulted  to  make  sure  that  all 
bills  are  in,  the  authorization  may  be  closed.  After  all  charges 
are  in,  the  total  expenditures  by  construction  account  num- 
bers should  be  submitted  to  the  engineer  in  charge,  who  will,  if 
necessary,  make  a  redistribution  of  the  exact  expenditures, 
which  may  differ  quite  a  good  deal  from  the  original  estimate. 

It  frequently  happens  that  expenditures  of  an  incidental 
nature  are  made  by  engineers  and  charged  against  authoriza- 
tions which  have  been  reported  closed  for  some  time.  If  the 
expenditures  have  nothing  to  do  with  the  construction,  but 
have  to  do  with  repairs  or  up-keep  and  arise  entirely  from  the 
operation  of  the  road,  they  should  certainly  not  be  charged 
against  the  authorization,  but  against  maintenance. 

This  rule  should  hold  regardless  of  whether  the  expenses 
in  question  have  been  incurred  by  the  maintenance  authorities 
or  by  the  construction  engineers.  It  makes  no  difference  who 
incurred  the  expenses.  If  they  are  a  proper  construction 
charge,  they  should  be  placed  to  the  construction  account  with- 
out any  reference  as  to  who  incurred  them,  and  vice  versa. 


ADDITIONS   AND    BETTERMENTS  243 

Belated  Bills — When  Chargeable  to  Authorization 

When  an  authorization  is  "closed"  on  the  books,  this  is 
done  merely  to  get  a  piece  of  work  which  is  no  longer  in  prog- 
ress off  the  current  statement.  It  is  a  fact  well  known  that  in 
many  undertakings  it  is  almost  impossible  to  determine  posi- 
tively when  all  the  charges  against  an  authorization  are  in 
until  a  long  time  after  the  work  has  been  completed.  In  the 
interest  of  convenience  it  is  the  practice  to  report  the  author- 
ization completed  when,  in  the  opinion  of  the  engineers,  the 
charges  are  all  in. 

If  subsequently  some  belated  bills  are  received,  the  fact 
that  the  engineers  have  reported  the  authorization  completed 
should  not  make  it  seem  necessary  to  the  accountant  to  handle 
those  charges  improperly  in  the  accounts.  If  the  charges 
had  been  received  before  the  engineer  reported  the  authoriza- 
tion as  closed,  they  would  have  been  charged  against  it  without 
any  question  and  would  have  gone  to  the  construction  account. 
If  they  are  proper  construction  charges,  they  should  still  go  to 
the  authorization  and  then  to  construction. 

It  is  not  fair  to  burden  operating  expenses  with  improper 
charges  simply  because  the  bills  were  late  in  getting  in  or 
because  some  matters  were  overlooked  or  forgotten.  The 
engineer  or  manager  who  has  jurisdiction  should  state  why 
the  charge  is  being  made  after  the  authorization  has  been 
closed,  and  should  give  all  details  to  show  that  such  charge  is 
correct.     The  correspondence  should  then  be  placed  on  file. 

New  Construction — Need  of  Careful  Records 

Strictly  speaking,  the  subject  of  new  construction  as  dis- 
tinct from  the  improvement  and  enlargement  of  existing 
property  is  outside  the  scope  of  this  book.  Building  a  new 
street  railway  is  much  like  other  construction  work.  The 
accounting  problems  which  it  presents  are  quite  different  from 
those  with  which  the  accounting  department  of  a  street  rail- 


244  "OUTSIDE"   ACCOUNTING   WORK 

way  has  to  do  once  the  road  is  organized  and  is  in  operation. 
It  cannot  be  said  too  emphatically,  however,  that  in  any  new 
construction  work  complete  and  clearly  intelligible  records 
should  be  kept  in  the  interest  of  the  road's  future. 

If  in  the  past  the  owners  and  organizers  of  street  railway 
companies  could  have  realized  that  adequate  construction  rec- 
ords would  become  valuable  assets  in  later  years,  less 
money  would  have  to  be  spent  today  in  appraising  street  rail- 
ways and  in  searching  records  for  information  which  should 
have  been  written  up  in  proper  construction  records  when  the 
various  properties  were  being  built.  Large  sums  are  fre- 
quently spent  in  looking  up  old  matters  which  should  have 
been  recorded  definitely  in  the  first  place;  and  it  is  apparent 
from  the  condition  of  such  scanty  records  as  are  available 
today  that  the  builders  of  the  street  railways  seldom  realized 
the  importance  of  this  matter. 

The  Interstate  Commerce  Commission  in  its  system  of  uni- 
form accounts  for  electric  railways  has  prescribed  a  very  good 
system  of  road  and  equipment  accounts,  which  should  be  fol- 
lowed in  new  construction  work. 

While  the  accounts  and  records  needed  for  new  construc- 
tion work  present  no  special  difficulties  of  form,  it  is  essential 
that  they  should  be  both  complete  and  readily  intelligible.  The 
minutes  of  board  meetings  should  be  given  to  show  the  organ- 
ization of  the  company.  All  engineering  records  should  be 
carefully  preserved  and,  in  particular,  the  record  of  any 
expenditures  for  tentative  or  preliminary  surveys.  Some  spe- 
cial pay-roll  records  or  accounts  with  contractors  employed 
to  build  the  road  are  useful,  but  no  special  construction  rec- 
ords need  be  kept  outside  of  a  good  journal,  ledger,  cash  book, 
and  voucher  record  or  voucher  journal. 


CHAPTER    XVI 

MISCELLANEOUS  WORK  IN  OTHER 
DEPARTMENTS 

The  Operating  Department — Division  Managers 

A  large  number  of  reports  come  to  the  comptroller's  office 
from  the  division  managers,  the  local  representatives  of  the 
operating  department  Some  of  these  reports  have  been 
treated  elsewhere  in  connection  with  the  passenger  service, 
express  and  freight  service,  the  pay-rolls,  stores,  and  addi- 
tions and  betterments.  Among  the  other  reports  made  by  the 
managers,  those  which  concern  the  supply  of  fuel,  oil,  and  the 
output  of  power  should  be  mentioned  here. 

Monthly  Report  of  Coal  Consumption 

The  managers  should  make  a  careful  report  monthly  of  the 
amount  of  coal  received  and  consumed  at  all  power  stations 
on  their  divisions.  For  this  Form  109  should  be  used.  This 
form  calls  for  comment  as  to  certain  points. 

1.  A  separate  report  should  be  made  for  each  power  sta- 
tion on  the  division,  each  one  to  be  headed  with  the  name  of 
the  station  and  the  name  of  the  month  in  which  the  report  is 
made.  If  two  kinds  of  coal  are  used  at  the  same  station  a 
separate  report  should  be  made  for  each. 

2.  The  figure  to  be  inserted  in  the  line  "Amount  on  hand 
first  day  of  month"  should  give  the  quantity  of  coal  on  hand 
as  reported  by  the  manager  on  his  previous  month's  report, 
unless  that  figure  has  been  adjusted  by  instructions  from  the 
comptroller's  office  as  explained  in  point  7  below. 

245 


24-6 


"OUTSIDE"  ACCOUNTING   WORK 


THE  WE5SEX  COMPANY 

TTils  Report  to  be  mailed  to  the  Comptroller  on  the  4*  of  each  month. 

MONTHLY   FUEL  REPORT 


Name  of  Station . 


Month  of_ 


Amount  on  hand  first  day  of  month 

"       received  during  the  month  (see  below) 

Amount  used  during  the  months  Total. 

for  ft>v»er  Purposes 

for  Shop  Use . 


For  Heating  Carhouse. 


lbs 


Amount  on  hand  last  day  of  month 


Remarks 


Amount  on  hand  last  day  of  month,  as  per  actual  measurements  attached. 


COAL  RECEIVED 


Date 
Unloaded 


Caror  Barge 


Initial      Weight  -  Lbs      Coal     F.O.B.      Shipper 


Kind  of 


Approved; 


Engineer 


Form  109.     Monthly  Fuel  Report.     Size,  Sy2  X  15. 


3.  The  figure  to  be  inserted  on  the  line  "Amount  received 
during  the  month"  should  be  the  total  of  the  detailed  report 
below  as  explained  under  comment  8.  The  total  of  these  two 
figures  shows  the  amount  of  coal  to  be  accounted  for. 

4.  Under  the  heading  "Amount  used  during  the  month" 
should  be  entered  the  amount  of  coal  used  or  removed  from 
the  power  station,  not  only  the  coal  used  for  power  purposes 
but  that  which  is  sent  to  repair  shops  for  use  there  and  that 
which  is  sent  to  car  houses  for  heating  purposes.  In  this  case, 
of  course,  the  name  of  the  car  house  should  be  specified.  Coal 
used  for  other  purposes  than  these  should  be  entered  on  one 
of  the  blank  lines  below  with  particulars  as  to  its  use. 


OTHER   DEPARTMENTS 


247 


The  above  amounts  are  entered  on  the  first  column  which 
is  totalled  and  the  total  carried  over  to  the  second  column. 
This  amount  deducted  from  the  total  to  account  for  gives  the 
balance  of  coal  on  hand  on  the  last  day  of  the  month. 

5.  The  heading  "Remarks"  is  intended  for  any  informa- 
tion concerning  the  above  items  which  the  manager  thinks 
should  be  noted. 

6.  Measurements  of  the  coal  piles  should  be  taken  and  the 
quantity  of  coal  on  hand  represented  by  those  measurements 
should  be  calculated  and  entered  on  the  line  "Amount  on  hand 
last  day  of  month,  as  per  measurements  attached." 

These  measurements  must  be  taken  according  to  the 
instructions  covering  the  matter ;  that  is,  obtain  the  cubic  con- 
tents of  the  bin  or  coal  pile  and  then  consider  that  there  are 
38.6  pounds  to  the  cubic  foot.  All  working  papers,  together 
with  a  sketch  of  the  coal  pile,  should  be  sent  in  with  the  report. 
The  managers  should  see  that  coal  piles  are  kept  so  far  as  pos- 
sible in  regular  shape  through  the  month  to  facilitate  measur- 
ing them. 

7.  These  sketches  and  calculations  are  checked  in  the 
comptroller's  office  and,  if  any  adjustment  in  the  accounts 
must  be  made,  the  manager  is  notified  of  that  fact  and  given 
the  corrected  amount  of  coal  on  hand;  with  these  figures  he 
starts  his  next  month's  report. 

8.  Under  the  heading  "Coal  Received"  an  itemized  record 
should  be  given  noting  in  every  case  the  date  unloaded,  the 
number  and  initials  of  the  car  or  barge,  the  weight  in  pounds, 
the  kind  of  coal,  f.  o.  b.,  and  the  name  of  shipper.  The  four 
columns  at  the  right  should  be  left  blank  as  they  are  for  the 
use  of  the  comptroller's  office.  The  column  "Weight,  lbs." 
should  be  totalled  and  should  agree  with  the  item  "Amount 
received  during  the  month"  referred  to  in  paragraph  3  above. 

Coal  from  a  partly  unloaded  car  or  barge  should  not  be 
included  in  this  report  of  coal  received,  but  should  be  reported 


248  "OUTSIDE"   ACCOUNTING  WORK 

after  the  car  or  barge  has  been  unloaded,  as  neither  the  comp- 
troller's office  nor  the  power  engineer  has  any  record  of  coal 
being  received  until  the  car  or  barge  is  entirely  unloaded. 
Managers  should  try  to  unload  their  coal  entirely  by  the  end 
of  the  month. 

9.  The  report  should  be  signed  by  the  engineer  and 
approved  by  the  manager. 

In  this  connection  there  are  the  reports  of  expense  for 
delivering  coal  to  power  stations.  Under  this  head  should  be 
included  not  merely  the  ordinary  cartage  from  docks  or  rail- 
road yards,  but  also  the  cost  of  getting  the  coal  where  the  fire- 
men can  use  it,  whether  the  charge  comes  from  contractors 
hired  to  perform  the  work,  or  from  company  employees.  For 
example,  if  coal  is  unloaded  from  a  company  dock  or  from 
cars  on  the  company  tracks,  and  placed  in  a  pile,  say  200  feet 
from  the  power  station,  laborers  must  be  employed  to  wheel 
the  coal  from  this  pile  into  the  power  station  bins  or  where 
the  firemen  can  get  the  coal.  Such  labor  is  a  portion  of  the 
expense  of  delivering  coal,  and  should  be  charged  to  the  Fuel 
Inventory  account. 

There  are  also  times  when  the  coal  pile  requires  .trimming 
and  any  expense  for  this  work  should  also  be  charged  to  the 
Fuel  Inventory  account. 

Power  Station  Output 

From  each  division  a  report  of  the  output  of  all  power 
stations  on  that  division  is  sent  in  monthly  on  Form  no. 
The  first  line  should  be  filled  out  with  the  name  of  the  division 
and  the  date.  On  the  next  blank  line  the  names  of  the  differ- 
ent power  stations  should  be  written.  If  there  is  a  central 
generating  station  and  a  substation,  the  word  "substation" 
should  be  written  after  the  name  of  the  latter.  In  the  proper 
column  the  total  output  of  the  stations  and  substations  in  kilo- 
watt-hours for  the  month  should  be  entered. 


OTHER   DEPARTMENTS 


249 


THE  W 

Report  sho'uld  be  mailed 
REPI 

ESSEX  ( 

to  the  Com 
month. 

DRT  OF 

on          Mont 

..... 

:OMPANY 

stroller  on  the  eighth  of  each 
POWER 

NET   OUTPUT    IN    Kl  LOWATT-HOURS    OF    POWER   STATION 

K.  W.  Hrs. 
Supplied  to 
Feeders 

Total 

Ry.  This  Div. 

Ry. 

Ry. 

Lighting- 

Other  Purp. 

Transformed* 

Total 

AMOUNT   OF  POWER   USED   FOR 
RAILWAY    PURPOSES    ON    THIS 
DIVISION. 

KILOWATT  SALES 

Source 

Amount 

To 

K.  W.  H. 

As  reported  above 
From  other  Divisions  as 

reported  by: 
Supt. 

Supt. 

Total    Sales 

Supt. 

LIGHTING 

Supt. 

To 

K.  W.  H. 

Supt._ 

Purchased  from  other 
Companies: 

Total  Power  Used  for 
Ry.  Purposes 

Total   Lighting 
As  Above. 

♦Note:    On  th 
station. 

e  Line  "Transformed"  show  the  input  tc 
...191 

)  the  sub- 

Form  no.    Power  Station  Output.    Size,  8l/2  X  14. 


On  divisions  where  there  is  railway  service  only  and 
where  the  power  furnished  from  each  of  the  stations  is  fur- 
nished for  railway  use  only,  the  output  of  its  stations  and  sub- 
stations is  shown  on  the  line  marked  "Railway" ;  the  entries 
should  be  so  arranged  that  generating  stations  come  first  and 
then  substations.  The  information  called  for  under  the  two 
headings  "Kilowatt   Sales"   and  "Lighting"  applies  only  to 


2c0  "OUTSIDE"   ACCOUNTING   WORK 

those  divisions  where  there  are  both  railway  and  lighting 
services;  this  line,  therefore,  need  not  be  used  on  railway- 
divisions. 

On  those  divisions  where  there  is  only  lighting  business, 
the  output  of  each  station  or  substation  will  be  shown  on  the 
line  "Lighting." 

On  divisions  where  there  is  both  railway  and  lighting  busi- 
ness the  names  of  the  various  stations  and  substations  are  to 
be  shown  as  indicated  above.  The  power  used  for  lighting 
purposes  only  is  shown  on  the  line  directly  under  the  proper 
power  station.  The  power  used  for  railway  purposes  from 
the  various  power  stations  and  substations  is  shown  on  the 
line  "Railway,"  a  separate  line  being  used  for  each  separate 
railway  division  and  the  output  being  shown  under  each 
station. 

This  report  should  be  filled  out  carefully,  dated,  signed, 
and  should  be  sent  to  the  comptroller  by  the  fifth  of  each 
month.  As  the  form  is  used  as  the  official  record  of  the  out- 
put of  all  stations,  it  must  be  absolutely  correct. 

Monthly  Report  of  Lubricants  Used 

A  monthly  report  is  sent  in  from  each  division  on  Form 
in,  showing  the  amount  of  oils  and  grease  used  for  lubri- 
cating purposes.  All  information  asked  for  on  the  blank 
should  be  filled  in,  and  it  is  to  be  noted  that  this  form  provides 
for  the  separation  of  the  lubricants  under  three  headings:  ( i ) 
Generating  Stations ;  (2)  Substations;  (3)  Cars. 

1.  Generating  Stations.  In  each  column  enter  on  the 
proper  line  the  quantity  of  each  kind  of  lubricant  actually  used 
at  the  station  during  the  month.  If  there  is  more  than  one 
generating  station  on  a  division,  a  separate  column  for  each 
station  should  be  used ;  the  name  should  be  written  at  the  top 
and  the  total  shown.  The  quantities  reported  must  be  the 
amount  of  lubricant  actually  used  at  the  power  station  and 


OTHER   DEPARTMENTS 


25* 


THE  WESSEX  COMPANY 

This  Report  to  be  mailed  to  Comptroller  on  the  10*  of  each  month. 

Monthly  Report  of  Oils  and  Grease  Consumed. 

Name  of  Division  Month  of    191  _ 

Note  -This  Report  is  not  intended  to  shew  the  amount  of  Lubricants  sent  from  Storeroom,  but  the  amount 
ACTUALLY  USED  for  Cars,  Power  Stations  and  Substation  Machinery 


GENERATING   STATIONS 


CiaL  I  Lbs.  Gal.  iLbs.   Gal.  |Lbs.  Gal.  |Lbs.  Gal.  I  Lbs 


TOTAL 


Gal.  Lba 


Galena  P.H.  Valve        Oil 


Engine 


Dynamo 


Turbine 


Crank  Case 


Air  Compressor 


1 

Approved' 

Correct: 

Mgr.  or  Supt. 

Form  in.    Monthly  Report  of  Oils  and  Grease  Consumed.     Size, 
8y2  X  ii. 


should  agree  with  the  monthly  power  station  operating  report. 

2.  Substations.  In  the  proper  column  under  "Substa- 
tions" should  be  entered  the  quantity  of  each  kind  of  lubricant 
used  at  all  substations. 

3.  Cars.  Under  the  heading  "Cars"  should  be  entered 
the  quantity  of  oil  used  in  lubricating  cars  during  the  month. 
Lubricants  used  for  shop  machines  or  other  purposes  should 
not  be  included,  but  only  the  amount  used  on  cars. 

The  kilowatts  and  total  car  mileage  should  be  entered  in 
the  space  provided  and  should  agree  with  the  other  reports 
covering  those  matters  made  to  the  comptroller's  office.     .  ' 


2r2  "OUTSIDE"  ACCOUNTING  WORK 

If  any  kind  of  lubricant  not  provided  for  on  the  form  is 
used,  a  full  description  of  it  should  be  entered  on  one  of  the 
blank  lines,  and  the  quantity  used  should  be  entered  in  the 
proper  column. 

Track  oil  and  signal  oil  should  be  entered  in  separate  col- 
umns or  as  a  "memo."  on  the  back  of  the  report.  Great  care 
should  be  used  in  preparing  this  report,  which  should  show 
only  the  actual  quantity  of  oil  used  for  lubricating  at  generat- 
ing stations  and  substations  and  on  cars.  It  should  not  show 
the  amount  of  oil  received  or  sent  from  the  storehouse,  but 
the  actual  consumption. 

If  any  oil  is  used  for  the  initial  lubrication  of  new 
machines  in  power  stations,  or  substations,  or  new  cars,  the 
amount  should  be  excluded  from  the  report  under  "Generat- 
ing Stations,"  "Substations,"  and  "Cars,"  and  be  entered  under 
"Remarks." 

Additional  Operating  Department  Forms 

The  work  of  the  division  managers  covers  many  other 
matters  which  cannot  be  touched  here,  owing  to  lack  of  space, 
but  additional  forms  are  shown  in  Part  IV,  for  the  benefit 
of  those  interested,  under  "Transportation  —  Passenger  and 
Express  Services,"  and  "Shop  and  Car  House  Forms." 

The  Legal  Department — Claim  Agents'  Accounts 

The  accounting  work  in  the  legal  department,  over  which 
department  the  accounting  department  has  supervision,  is 
practically  confined  to  the  claim  agents'  reports  of  their  work- 
ing funds.  In  settling  claims  for  accidents  and  damages  the 
practice  of  American  street  railway  companies  varies  a  great 
deal.  Some  of  them  use  a  system  of  drafts,  while  others  place 
working  funds  in  the  hands  of  their  claim  agents;  the  meth- 
ods of  settlement,  of  course,  are  also  various.     The  instruc- 


OTHER   DEPARTMENTS  253 

tions  outlined  herewith  provide  for  a  system  of  working  funds 
in  the  hands  of  the  claim  agents. 

Claim  Agents'  Working  Fund 

No  exact  rule  can  be  laid  down  for  handling  such  a  work- 
ing fund,  but  in  general  it  is  entrusted  to  the  agent  for  the  fol- 
lowing purposes: 

1.  For  the  immediate  settlement  of  accidents  and  dam- 

ages, particularly  small  ones  and  those  that  cannot 
be  settled  at  a  later  date  through  check  and  voucher 
direct. 

2.  For  any  emergency  case  that  cannot  wait  until  the 

regular  check  and  voucher  can  be  received  from  the 
main  office. 

3.  For  the  payment  of  doctors'  bills  which  it  is  necessary 

to  pay  immediately,  obtaining  the  doctor's  regular 
uniform  receipted  bill. 

4.  For  payment  of  witness  fees  and  expenses,  obtaining 

their  receipt  for  the  payment. 

5.  For  advances  to  other  claim  agents  in  their  emergency 

cases.  Such  advances  should  always  be  accom- 
panied with  a  letter  of  transmittal,  and  a  copy  sent 
as  soon  as  possible  afterwards  to  the  comptroller's 
office.  When  the  amount  is  returned,  it  should  be 
accompanied  by  a  letter,  a  copy  of  which  should  be 
sent  to  the  comptroller's  office. 

No  part  of  this  fund  should  be  used  to  advance  wages  to 
any  assistants  in  the  department  or  to  any  employees  of  the 
company.  Under  no  circumstances,  of  course,  should  any 
part  of  the  fund  be  used  for  personal  expenditures.  No  rule 
can  be  laid  down  stating  exactly  where  the  claim  agent  shall 
keep  the  money  which  he  may  have  on  hand.  It  would  be 
well,  however,  to  keep  the  largest  part  of  his  working  fund  on 


2c4  "OUTSIDE"   ACCOUNTING   WORK 

deposit  in  a  bank  near  his  office.  It  should  be  deposited  in  his 
name  as  claim  agent  and  checks  drawn  should  be  signed 
"Joe  Doe,  Claim  Agent  for Company." 

Claim  Agent's  Cash  Book 

To  account  for  this  working  fund  the  claim  agent  is 
required  to  keep  a  small  cash  book  and  report  to  the  comp- 
troller. The  book  should  be  opened  by  entering  on  the  debit 
side  the  amount  of  cash  on  hand  as  of  a  certain  date,  and  on 
the  credit  side  the  disbursements  daily,  giving  the  date,  name, 
and  amount.  When  the  agent  receives  the  check  reimbursing 
him  for  disbursements  he  will  note  the  amount  so  received  on 
the  debit  side  of  the  cash  book,  as  "Reimbursements  for  Dis- 
bursements, Month  of ,  $ "     It  will 

sometimes  happen  that  when  a  large  accident  occurs  on  the 
agent's  division  he  will  receive  an  amount  from  some  other 
claim  agent  to  take  care  temporarily  of  settlements.  When 
such  is  the  case  the  matter  should  be  recorded  in  the  cash  book 
in  the  regular  way,  to  show  the  amount  received,  the  disburse- 
ments, and  the  eventual  reimbursement.  This  will  enable  the 
claim  agent  to  tell  exactly  the  status  of  his  working  fund  and 
to  furnish  a  statement  to  the  comptroller's  office  at  any  time. 
It  will  also  enable  the  traveling  auditor  to  check  the  agents' 
accounts  properly. 

At  the  end  of  the  month  the  cash  book  should  be  balanced 
and  the  balance  carried  forward  to  a  new  page.  At  this  time 
also  the  claim  agent  should  prepare  a  voucher  covering  the 
disbursements  for  the  previous  month,  including  his  personal 
expenses,  etc.  In  this  way  the  working  fund  is  reimbursed 
each  month. 

Claim  Agent's  Accounts  Checked  by  Traveling  Auditors 

When  a  disbursement  is  made  the  agent  should  draw  a 
check  upon  this  account,  making  the  proper  record  on  the  stub 


OTHER    DEPARTMENTS  255 

of  his  check  book.  If  he  does  this,  it  is  easy  for  the  traveling 
auditor  or  any  properly  authorized  representative  of  the  com- 
pany to  check  up  his  accounts;  his  check  and  bank  books;  the 
disbursements  which  he  has  made  and  for  which  he  holds 
receipts;  the  record  of  the  disbursements  which  he  has  made 
and  which  are  in  transit  between  his  office  and  the  main  office ; 
and  the  balance  of  cash  to  make  up  the  total  of  the  working- 
fund.  This  balance  in  cash  should  be  either  in  the  agent's 
pocket,  or  in  the  office  where  it  is  available  to  the  person 
authorized  to  check  the  accounts.  In  no  case  should  bank 
books  be  accepted  as  evidence  for  this  fund  when  they  show 
only  the  name  of  the  agent  without  his  official  title. 

Additional  Legal  Forms 

In  connection  with  this  accounting  in  the  legal  department 
there  are,  of  course,  many  other  records  kept  by  the  claims 
attorney  and  other  officials  of  the  department.  A  number  of 
the  forms  used  are  shown  among  the  additional  forms  listed  in 
Part  IV. 

Engineering  Departments — Power  and  Equipment 

Of  the  three  engineering  sections  shown  on  the  organiza- 
tion chart  in  Chapter  I,  mention  may  be  made  here  of  the 
work  of  the  chief  engineer  of  power  and  equipment.  Most  of 
the  reports  which  come  up  through  the  power  and  equipment 
office  have  been  touched  upon  in  various  chapters  —  for 
instance,  the  fuel  report  and  the  kilowatt-hour  report  which 
have  been  described  above.  The  chief  engineer  of  power  and 
equipment  approves  the  fuel  invoices  for  the  coal  as  contained 
in  fuel  report;  he  also  checks  up  and  approves  the  K.  W.  H. 
reports.  In  addition  to  these  reports  there  is  one  other  which 
affects  the  accounting  department,  namely,  the  permit  for 
attaching  wires,  etc.,  to  the  poles  at  certain  rental  figures. 
For  this  Form  1 12  is  used. 


256 


"OUTSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
PERMIT  FOR  ATTACHMENTS 

The   Wessex    Company,    hereinafter   known   as    the    Licensor, 
hereby  grants  permission  to  the                                                  ,    herein- 
after known  as  the  Licensee,  to  make  attachments  to  such  poles 
of  the  Licensor  as  are  herein  specified  under  the  terms  and  con- 
ditions hereinafter  given. 

Pole  No. 

Gain 

Attachments  to   Consist   of 

Annual  Rental 

Rate   1  Total 

^v_^_^nL-v_^-v_j 

[^1^1^'^^                                                            I               1 

Town. 

Diagram 

Show 

ng 

#Approx 

mate 

Division 
Location 

of 

Po 

es 

In  accepting  this  permit,  the  Licensee  agrees  that: 

1.  The  ownership  of  the  pole  or  poles  shall  remain  with, 
and  the  title  to  the  pole  locations  shall  be  vested  in,  the  Licensor. 

2.  The  attachments  shall  be  made  in  accordance  with  that 
part  of  Section  Three  of  The  Report  of  the  Committee  on  Over- 
head Line  Construction  of  the  National  Electric  Light  Associa- 
tion, read  before  its  Thirty-Fourth  Convention  held  at  New  York 
City,  May  29th .to  June  2nd,  1911,  and  entitled:  "Specifications  for 
Construction  on  Poles  Jointly  Used."  In  case  specifications  are 
issued   by    the    Public    Utilities    Commission    of    the    State    of.... 

such  specifications  shall  automatically  supersede  the 

above   mentioned    specifications. 

3.  All  poles  that  shall  by  reason  of  location  or  use  be  subject 
to  special  strain  by  reason  of  the  attachments  made  to  them, 
shall  be  securely  guyed  or  concreted  in,  or  both,  by  the  Licensee, 
where  in  the  judgment  of  the  Licensor,  such  construction  is 
considered  necessary. 

4.  It  will,  at  its  own  expense,  upon  thirty  (30)  davs  written 
notice  from  the  Licensor,  change  or  relocate  its  attachments 
whenever  in  the  judgment  of  the  Licensor,  such  change  or  re- 
location is  necessary. 

5.  This  permit*  is  void  unless  made  use  of  within  (90)  days 
from  date  of  its  issue. 

6.  It  will  at  its  own  expense  upon  six  (6)  months  written 
notice  from  the  Licensor,  remove  the  aforesaid  attachments. 

7.  The  attachments  requested  are  not  included  under  any 
existing  agreement  between  the  Licensee  and  the  Licensor  and 
if  at  a  later  date  a  contract  is  made  covering  a  mutual  inter- 
change of  attachments  at  this  location,  the  attachments  included 
in  this  permit  will  be  included  in  such  agreement. 

8.  It  will  indemnify  and  save  harmless  the  Licensor  against 
any  and  all  claims,  damages  and  expense  to  which  the  Licensor 
may  be  subjected  by  reason  of  any  work  done  or  precaution 
omitted  by  the  Licensee,  its  agents  or  contractors,  with  reference 
to  the  attaching  and  maintenance  of  the  aforesaid  attachments. 


THE  WESSEX  COMPANY. 


By. 


Chief  Engineer  Power  and  Equip. 
Licensee's  Application  No Dated 


Form    112.      (a)    Permit    for   Attachments    (in    quadruplicate). 
Size,  8l/2  X   14. 


OTHER   DEPARTMENTS 


257 


Notice  of  Completion  of  Attachments  to  The  Wessex  Company's 

Poles 


THE   WESSEX   COMPANY, 
Mr 


.191... 


This    is    to   notify   you    that   attachments   covered    in   Wessex 

Company  Permit  No dated were 

completed 

Company. 

By 


(To  be  filled  In  and  forwarded  to  C.  E.  P.  &  E.) 
Attachments   have   been  checked  and   are satisfactory. 


Approved: 


Line  Foreman. 
Manager  or  Superintendent. 

Forwarded  to  Comptroller 191 

Chief  Engineer  Power  and  Equipment 


Form    112.      (b)    Permit    for    Attachments — Completion    Notice 
(coupon  attached  to  original). 


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quadruplicate). 


258 


"OUTSIDE"   ACCOUNTING  WORK 


This  form  is  made  up  in  quadruplicate  and  the  following 
instructions  are  issued  in  connection  therewith. 

The  original  or  white  sheet  is  sent  to  the  company  apply- 
ing for  permission  to  make  attachments,  and  after  such 
attachments  have  been  made  the  detachable  completion  notice 
is  to  be  returned  by  such  foreign  company  to  the  division 
office,  for  checking  on  the  spot  by  the  line  foreman  and  subse- 
quent approval  on  the  part  of  the  division  manager. 

The  completion  notice  is  then  sent  to  the  chief  engineer 
of  power  and  equipment  and  by  him  to  the  comptroller. 

The  duplicate  or  green  sheet  is  sent  to  the  division  office 
for  filing;  the  triplicate  or  yellow  sheet  is  sent  to  the  comptrol- 
ler for  his  record;  and  the  pink  sheet  or  quadruplicate  is 
retained  in  the  office  of  the  chief  engineer  of  power  and 
equipment. 

The  above  arrangement  should  give  everyone  concerned  a 
satisfactory  record,  and  it  should  provide  the  comptroller 
with  the  necessary  information  for  issuing  bills  to  cover. 

Additional  Engineering  Forms 

The  work  of  the  engineer  in  charge  of  maintenance  of 
way,  as  well  as  that  of  the  engineer  in  charge  of  construction, 
so  far  as  the  accounting  department  is  closely  concerned,  has 
been  touched  upon  in  Chapters  X  and  XV.  Other  forms  used 
in  the  engineering  departments  are  given  in  Part  IV. 


Part  III — Accounting  Work  Mainly  Inside  the 
Comptroller's  Office 


CHAPTER  XVII 

THE   GENERAL  BOOKS 

Difference  between  General  and  Detail  Books 

So  far  as  the  general  books  are  concerned,  the  accounting 
of  a  street  railway  company  differs  but  little  from  that  of 
other  large  business  concerns  except  that  the  process  of  sim- 
plification has  perhaps  been  carried  somewhat  further  than  is 
usual. 

Keeping  the  general  books  represents  what  used  to  be 
thought  the  essential  function  of  an  accounting  department, 
that  is  to  say,  checking  and  keeping  track  of  the  income  and 
expenses  so  as  to  pre'sent  a  view  of  the  business  as  a-  whole. 
In  any  large  modern  business,  however,  this  keeping  track  of 
the  business  as  a  whole  constitutes  a  very  small  part  of  the 
accounting  work.  To  include  in  the  general  books  the  con- 
crete detail  of  an  elaborate  business  would  make  them 
unwieldy  and  virtually  useless.  Most  of  the  accounts, 
accordingly,  are  divided  today  among  a  large  number  of  detail 
books,  and  the  general  books  have  become  very  simple  in  form, 
containing  merely  a  few  large  controlling  accounts. 

Opinions  among  accountants  differ  somewhat  as  to  the 
number  of  controlling  accounts  that  should  be  kept  in  the  gen- 
eral ledger.  The  writer  believes  in  having  the  general  ledger 
as  free  and  unencumbered  as  possible,  inasmuch  as  details  can 
be  kept  much  better  in  sub-ledgers. 

259 


260 


"INSIDE"   ACCOUNTING  WORK 


The  General  Journal 

A  few  suggestions  may  be  given  as  to  methods  of  handling 
the  general  books. 

The  entries  for  the  general  journals  can  be  made  up  most 
conveniently  by  using  loose-leaf  journal  entry  blanks  some- 
what like  the  example  given  in  Form  113.  These  should  be 
provided  in  two  sizes,  sheets  and  half-sheets. 


No 
Month  of 

THE  WE5SEX  COMPANY 

ACCOUNTING  DEPARTMENT- JOURNAL  ENTRY 

W                                      .Iniirnal  R-ilin 

DEBIT 

CREDIT 

— 

Approved^ 

Cntered 

(bmptnoller 

Bookkeeper 

Form  113.     Journal  Entry  Form.     Size,  8l/2  X   14. 


These  blanks  are  filled  in  as  occasion  requires,  several 
entries  on  one  blank.  In  every  case,  along  with  the  main  body 
of  the  entry  the  date  when  it  was  made  up  and  the  month's 
account  to  which  it  belongs  should  be  shown  clearly.  The 
entries  on  each  blank  when  completed  are  initialled  by  the 
clerk  who  has  made  them  out.    They  are  then  submitted  to  the 


THE   GENERAL   BOOKS 


26l 


head  bookkeeper,  who  also  initials  them  before  presenting 
them  to  the  comptroller  for  his  approval. 

An  important  part  of  the  head  bookkeeper's  duties  in  a 
business  so  large  is  keeping  track  of  these  entries  for  the  gen- 
eral journal,  not  merely  to  see  that  they  are  correct  in  form, 
etc.,  but  to  make  sure  that  none  which  should  be  included  in 
the  general  books  are  overlooked  and  that  those  which  should 
be  included  are  entered  at  the  right  time. 

This  work  is  much  facilitated  by  keeping  at  hand  a  list 
sheet  for  the  entries  which  present  themselves  regularly  each 
month.  It  should  be  ruled  with  columns  for  twelve  months 
in  the  year,  somewhat  as  shown  below. 

Of  course,  there  are  other  items  which  may  be  added  to  the 
list,  and  each  comptroller  should  make  sure  that  the  book- 
keeper adds  entries  to  the  list  as  the  business  requires.  There 
may  be  items  which  cannot  be  thus  listed,  such  as  correction 
entries,  etc.,  but  with  such  a  list  as  the  following  the  head 
bookkeeper  is  sure  of  covering  the  regular  entries  each  month. 
This  list  is  given  merely  as  an  illustration  and  is  not  supposed 
to  be  complete  in  any  way. 


The  Wessex  Company 


1917 


List    of     Regular     Monthly     Journal 
Entries 


General  and  Miscellaneous 

To  Prepaid  Insurance 
Taxes 

To  Prepaid  Taxes 
Taxes 

To  Accrued  Taxes 
Rent  of  Leased  Roads 

To  Accrued  Rent  for  Leased  Roads 
Sundries 

To  Accrued  Rental  of  Land  and 
Buildings 


Jan. 


Feb. 


Mar. 


Apr. 


May 


Jun. 


262 


"INSIDE"   ACCOUNTING  WORK 


The  Wessex  Company 


1917 


List    of    Regular    Monthly    Journal 
Entries 


Jan. 


Feb. 


Mar. 


Apr. 


May 


Jun. 


Interest  on  Unfunded  Debt 

To   Accrued    Interest   on   Unfunded 
Debt 
Maintenance  of  Equipment 

To  Accrued  Depreciation  of   Equip- 
ment 
Maintenance  of  Equipment 

To  Automobile  Expense 
Maintenance  of  Equipment 

To  Automobile  Inventory 
Accrued  Earnings 

To  Operating  Revenue 
Prepaid  Earnings 

To  Miscellaneous  Rentals 
Maintenance  of  Equipment 

To  Maintenance  of  Equipment 

(10%  on  Labor  and  Material  on 
work  done  in  shops) 
Operating  Revenue 

To  Fare  Redemption 
General  and  Miscellaneous 

To  Casualties  and  Insurance  Reserve 

Material  and  Supplies 
General  and  Miscellaneous 

To  General  and  Miscellaneous 

(Percentage  of  Cost  of  Handling 
Stores) 
Sundries 

To  General  Stores 
Scrap  Account 

To  Sundries 
Sundries 

To  Scrap  Expense 
Sundries  (Coal  Burned) 

To  Fuel  Inventory- 
Fuel  Inventory  (Coal  Received) 

To  Sundries 


THE   GENERAL   BOOKS 


263 


The  Wessex  Company 


1917 


List    of     Regular     Monthly     Journal 
Entries 


Passenger  Department 
Local  Cashiers 

To  Collections 
Cash  in  Transit 

To  Local  Cashiers 
Advance  Ticket  Sales 

To  Operating  Revenue 
Operating  Revenue 

To  Operating  Revenue 
(Dog  Fares) 
Operating  Revenue 

To  Operating  Revenue 

(Chartered  Cars,  more  than  one 
Division) 
Pay-roll 
Paymaster's  Account 

To  Wages  Unclaimed 
Sundries 

To  Pay-roll  Suspense 

(Clerks'  Pay-roll) 

(General        "       ) 

(Monthly       "       ) 

Wages  Unclaimed 

To  Sundries 

(Write  off  in  June  and  Dec.) 

Bills  Collectible 
Bills  Collectible 

To  Sundries 
Sundry  Sales 

To  Sundries 

Vouchers  Payable 
Sundries 

To  Vouchers  Payable 

Express  Department 
Entries    for    this    work    shown    and    ex- 
plained  in  detail  on  page  137. 


Jan. 


Feb. 


Mar. 


Apr. 


May 


JUN. 


26  "INSIDE"  ACCOUNTING  WORK 

An  explanation  should  accompany  each  journal  entry  to 
tell  all  about  it.     For  example,  in  the  second  entry: 

Taxes 

To  Prepaid  Taxes 
For  one  month's  taxes  set  up 
on  basis  of  4>^%  of  gross 
earnings,  these  to  be  paid 
when  due. 
The  head  bookkeeper  is  held  responsible  for  the  journals. 
They  should  be  kept  in  the  bookkeeping  department  of  the 
office  nearly  all  the  time,  and  handled  only  when  absolutely 
necessary  and  by  clerks  authorized  by  the  head  bookkeeper. 

Journal  and  Ledger  Entries 

When  entries  are  received  from  the  comptroller  with 
approvals,  they  should  be  copied  into  their  respective  journals. 

The  instructions  given  for  the  general  journals  apply  also 
to  the  general  ledgers.  Entries  are  posted  direct  from  jour- 
nals and  cash  book.  In  some  companies  the  cash  book  is  jour- 
nalized but  this  is  unnecessary. 

General  Trial  Balance  Sheets 

Similar  instructions  apply  to  the  general  trial  balance 
sheets.  The  accounts  should  be  so  arranged  in  the  general 
ledger  that  when  the  trial  balance  is  taken  the  balances  may 
be  readily  grouped  for  making  the  general  balance  sheets. 

It  must  be  borne  in  mind  that  all  this  work  in  connection 
with  the  general  books,  while  comparatively  simple  in  form, 
is  of  vital  importance  to  the  business  and  should  be  entrusted 
only  to  an  expert  bookkeeper.  A  man  of  this  sort,  while  giv- 
ing his  immediate  attention  only  to  the  general  books,  may  at 
the  same  time  exercise  a  checking  and  supervising  influence 
over  the  subsidiary  accounts. 


CHAPTER  XVIII 

DETAIL     LEDGERS     OF     EARNINGS,     EXPENSES, 
SUPPLIES,   ETC. 

Books  Supplementary  to  General  Books 

The  number  of  the  detail  books  required  by  a  large  street 
railway  company,  to  supplement  the  general  books  with  their 
few  controlling  accounts,  is  very  considerable.  The  Inter- 
state Commerce  Commission,  which  governs  all  street  rail- 
ways doing  interstate  business  and  to  which  many  others  con- 
form, calls  for  262  accounts  in  all,  in  six  groups:  Operating 
Revenues,  19;  Operating  Expenses,  100;  Income,  25;  Profit 
and  Loss,  17;  Balance  Sheet,  51;  Road  and  Equipment,  50. 
Although  no  one  road  probably  will  have  all  the  activities  here 
provided  for,  the  partial  list  of  regular  journal  entries  given 
in  Chapter  XVII  suggests  the  large  number  of  accounts  which 
must  be  carried  by  any  large  company. 

Space  does  not  permit  taking  up  all  of  these  detail 
accounts;  many  of  them,  of  course,  are  so  fully  explained  in 
the  Interstate  Commerce  Commission's  "Uniform  System  of 
Accounts  for  Electric  Railways"  that  there  is  no  need  for 
special  comment.  The  following  comprise  the  detail  books 
which  are  usually  of  chief  importance  in  a  large  and  diversi- 
fied street  railway  system,  all  of  which  call  for  somewhat 
special  treatment. 

General  Operating  Earnings  and  Expense  Ledger 

Most  important  of  them  all  is  the  general  operating  earn- 
ings and   expense   ledger    (Form    114).      In   this  one   book 

265 


266 


'INSIDE"   ACCOUNTING   WORK 


'[the  wessex  company  // 

// 

toucher 
No. 

Bill 
No. 

J.E. 
No. 

OTICULARS 

Ancaster 
Lines 

Dundas 
Lines 

Freelton 
Lines 

-1  1— 

GENERAL 

TOTAL 

pO= 

\ 

\\ 

(1 

1 

II 

r—n 

i  n 

l'f     ' 

}T 

1 

-u  ■  -■ 

l     II 

\  \ 

■    t 

Form  114.     General   Operating  Earnings   and  Expense  Ledger 
(face  and  reverse).     Size,  23  X  17^. 


are  carried  the  19  operating  earnings  accounts  and  the  100 
operating  expense  accounts  prescribed  by  the  Interstate  Com- 
merce Commission.  These  operating  earnings  and  expense 
accounts  are  kept  in  a  large  loose-leaf  book.  Several  years 
ago  the  street  railway  companies  were  using  a  classification  of 
accounts  containing  about  50  operating  accounts.  At  that 
time  it  was  usual  to  have  the  expense  ledger  in  one  bound 
volume,  which  was  very  difficult  to  balance  quickly  with  the 
general  ledger  because  only  one  clerk  could  work  on  the 
bound  volume.  The  expense  accounts  are  classified  by  the  Inter- 
state Commerce  Commission  under  five  general  headings, 
namely:  Way  and  Structures,  Equipment,  Traffic,  Conducting 
Transportation,  General  and  Miscellaneous,  and  all  these 
groups  appeared  in  the  general  ledger  under  their  respective 
headings.  To  overcome  the  difficulty  of  one  clerk  working  on 
the  bound  expense  ledger  volume,  it  was  arranged  later  to 
have  two  bound  volumes,  each  containing  one-half  of  the 
operating  accounts. 

There  was  still  difficulty  in  balancing  these  two  expense 
ledgers  with  the  general  ledger,  and  when  the  Interstate  Com- 


DETAIL   LEDGERS  267 

merce  Commission  promulgated  their  Uniform  System  of 
Accounts  of  July  1,  19 14,  with  100  expense  accounts  it  was 
necessary  to  devise  a  better  method  to  make  it  possible,  after 
all  of  the  earnings  and  expenses  had  been  posted  in  the 
expense  ledger  during  the  month,  to  balance  it  quickly  with 
the  general  ledger  details  under  the  respective  general  head- 
ings. A  loose-leaf  book  was  devised  accordingly  so  that,  for 
instance,  the  leaves  covering  the  group  of  expenses  under  the 
heading  "Way  and  Structures"  could  be  taken  out  and  given 
to  one  clerk;  those  covering  "Equipment"  given  to  another 
clerk;  and  so  on  with  the  rest  of  the  groups  of  accounts.  If 
necessary,  five  clerks  could  work  at  one  time,  balancing  the 
general  expense  ledger  with  the  general  ledger  accounts,  thus 
greatly  facilitating  the  work  and  getting  the  balances  out  on 
time.  After  these  loose  leaves  or  sheets  have  served  their  pur- 
pose and  have  become  a  year  or  more  old,  they  are  bound  in 
a  permanent  volume. 

Handling  of  Expense  Ledger 

The  loose-leaf  sheets  making  up  the  expense  ledger  are 
arranged  with  a  column  for  each  division  of  the  road ;  and  all 
vouchers  and  journal  entries  which  have  charges  or  credits  to 
operating  expenses,  all  bills  and  journal  entries  which  have 
credits  to  earnings  will  be  entered  in  this  book  by  divisions  as 
they  come  through.  A  brief  description  of  each  item  should 
be  given  in  every  case  in  the  space  allotted  for  that  purpose. 
Bills  should  be  posted  direct  from  the  bills  collectible  register 
at  various  times  during  the  month.  All  vouchers  and  bills 
should  be  checked  back  on  the  voucher  and  bill  registers  before 
the  voucher  and  bill  collectible  entry  for  the  month  is  made 
up  for  the  general  journal.  Errors  in  posting  are  apt  to  occur 
in  the  voucher  and  bill  books,  and  if  they  are  corrected  before 
the  voucher  and  bill  entries  are  made  up  ready  for  the  general 
journal,  correcting  journal  entries  are  not  necessary. 


26g  "INSIDE"   ACCOUNTING  WORK 

Correction  of  Errors 

Errors  in  posting,  such  as  assigning  to  one  division  or 
account  that  which  should  have  been  assigned  to  another  divi- 
sion or  account  when  both  are  under  the  same  general  ledger 
heading,  should  be  corrected  by  debiting  the  proper  account 
in  black  ink,  crediting  the  other  account  in  red  ink,  and  writ- 
ing in  the  "Particulars"  column  a  brief  but  clear  explanation 
regarding  the  voucher,  bill,  or  journal  entry  which  is  being 
corrected.  The  comptroller  or  chief  clerk  should  at  once 
initial  the  correction  and  the  clerk  immediately  in  charge 
should  be  cautioned  to  see  that  this  is  done. 

When  all  items  for  the  month  have  been  posted,  each 
account  should  be  footed,  and  the  footing  for  each  successive 
month  added  to  the  figure  for  the  earlier  months  of  the  cur- 
rent year.  The  figures  for  the  series  of  months  should  then 
be  drawn  off  and  the  total  of  all  of  the  accounts  which  come 
under  one  group  of  ledger  headings  should  equal  the  general 
ledger  balance  for  that  particular  group  of  accounts.  The 
figures  are  then  ready  to  be  transferred  to  the  monthly  state- 
ments, for  the  month  and  the  yearly  period.  The  book  should 
then  be  ruled  and  the  balances  brought  down  in  their  respec- 
tive places  in  readiness  for  the  next  month's  postings. 

Power  Station  Sub-Expense  Ledger  Accounts 

A  sub-ledger  for  power  station  accounts,  similar  to  the 
general  expense  ledgers,  should  be  provided.  This  book, 
which  is  merely  a  further  extension  or  analysis  of  the  general 
expense  ledger,  should  contain  all  the  power  accounts,  just  as 
the  expense  ledger  does,  but  carried  or  posted  to  each  power 
station  or  substation.  Take,  for  instance,  what  is  known  in 
the  Interstate  Commerce  Commission's  system  as  "Operating 
Account  53,  Fuel  for  Power."  The  cost  of  the  coal  burned  is 
posted  to  this  account  in  the  general  expense  ledger  and  at  the 
end  of  the  month  the  total  expense  for  the  month  for  one  divi- 


DETAIL   LEDGERS  269 

sion  of  the  company  appears  under  this  account.  But  suppose 
there  are  two  power  stations  and  three  substations  on  this  divi- 
sion and  it  is  desired  to  ascertain  the  cost  of  coal  for  each  of 
the  stations  and  the  expense  for  handling  at  each  substation; 
then  one  can  readily  understand  the  utility  of  this  power  sta- 
tion sub-expense  ledger,  which  indicates  the  cost  of  the  coal 
and  other  expenses  at  each  station. 

All  vouchers  and  journal  entries  on  which  there  are 
charges  to  power  stations  or  substations,  and  all  bills,  should 
be  posted  in  this  detail  book  as  they  come  through.  When  all 
these  items  are  posted  each  account  should  be  footed  for  the 
month.  Each  individual  item  making  up  Account  53,  for 
instance,  should  be  checked  against  the  same  account  in  total 
as  it  appears  on  the  expense  ledger,  care  being  taken  that  the 
proper  division  is  being  charged  or  credited  alike  on  both  the 
expense  ledger  and  the  sub-expense  ledger.  The  month's 
figures  should  then  be  added  to  those  for  the  series  of  months 
of  the  current  year,  and  the  monthly  report  ruled  up. 

Park  Earnings  and  Expense  Sub-Ledger 

In  case  the  company  maintains  amusement  parks  among 
its  auxiliary  operations,  as  explained  in  Chapter  IX,  a  special 
sub-ledger  similar  to  that  of  the  power  station  accounts  should 
be  kept  to  cover  this  subject.  This  should  give  the  details  of 
the  Interstate  Commerce  Commission  Account  81  (Park 
Resorts  and  Attractions),  which  is  covered  in  the  expense 
ledger.  All  vouchers,  journal  entries,  and  bills  should  be  duly 
posted,  each  item  being  checked  with  the  corresponding  item 
appearing  on  Account  81.  After  all  items  have  been  checked, 
the  combined  total  of  all  the  sub-accounts  should  equal  the 
total  of  Account  81  as  shown  in  the  expense  ledger.  All  cred- 
its to  Account  81  should  be  posted  in  red  ink  unless  the  credit 
is  an  earning ;  then  it  should  be  posted  among  the  earnings  in 
black  ink. 


270  "INSIDE"  ACCOUNTING  WORK 

Fuel  Inventory  Sub-Ledger 

As  one  of  the  heaviest  single  expense  accounts  of  the  mod- 
ern street  railway  is  that  for  fuel,  the  fuel  inventory  ledger 
is  one  of  the  most  important  of  the  detail  books.  A  book  with 
four-column  ruling  should  be  provided  somewhat  in  the  fol- 
lowing form: 


Date  |  Vo.  No.  1  Particulars                         Price  1  Tons  |  Pounds  |  Total 

II                      1       1       1         1 

II                      1       1       1         1 

II                             II 

Each  month  when  the  reports  are  received  on  Form  109, 
"Monthly  Fuel  Report,"  they  should  be  checked  and  an  encry 
made  for  the  general  journal,  charging  Fuel  Inventory  with 
the  amount  of  coal  received  at  the  invoice  price  and  crediting 
Accounts  Payable  Fuel.  The  Fuel  Inventory  account,  as 
detailed  in  this  sub-ledger,  is  a  running  inventory  of  all  coal 
received,  used,  and  on  hand.  By  running  this  account  it  is 
plain  that  the  coal  used  can  be  charged  out  at  an  average 
price,  and  the  account  is  credited  accordingly  with  the  amount 
of  coal  used  or  burned  during  the  month  at  the  average  price. 

When  the  invoices  for  coal  purchased  are  paid,  as 
explained  in  Chapter  XX,  they  are  charged  against  this 
Accounts  Payable  Fuel  account;  therefore,  if  all  coal  bills 
were  paid  at  the  end  of  the  month  there  would  be  no  balance 
in  this  account.  The  amount  of  the  freight  and  coal  received 
should  be  shown  opposite  the  entry  for  each  car,  and  when 
the  journal  entry  is  made  up  for  coal,  freight  charges  should 
be  included  charging  the  freight  to  Fuel  Inventory  account 
and  crediting  the  account  "Freight  Charges  on  Fuel."  There 
are  also  charges  to  this  Fuel  Inventory  account  from  the  pay- 
roll, and  also  cartage  and  discharging  bills  or  bills  for  unload- 
ing boats,  if  the  company  receives  coal  by  boat — all  of  which 


DETAIL   LEDGERS 


271 


are  to  be  added  to  this  account.  The  clerk  should  make  sure 
that  all  cartage  charges  are  in  before  the  accounts  of  the  month 
are  finished,  or  else  that  an  estimated  amount  is  set  up  to 
cover  such  charges. 

Corrections  and  Adjustments  in  Fuel  Inventory  Sub-Ledger 

All  differences  between  the  amounts  estimated  as  due  for 
coal  or  freight  on  coal  and  those  actually  paid  should  be 
charged  to  this  account,  provided  the  amount  actually  paid  is 
larger  than  the  amount  estimated.  If  the  situation  is  reversed 
the  account  should  be  credited  with  the  difference.  Should 
the  amount  paid  be  larger  than  that  estimated,  the  difference 
may  be  charged  to  this  account  on  the  invoice  or  freight  bill ; 
but  should  the  amount  paid  be  less  than  that  estimated,  the 
journal  entry  will  be  necessary. 

If  a  cartage  bill  does  not  appear  in  time  to  be  taken  into 
the  current  month's  account,  it  is  necessary  to  estimate  the 
cartage  charge  by  preparing  a  journal  entry  charging  Fuel 
Inventory  and  crediting  Accounts  Payable  Fuel. 

Adjustments  of  Coal  Measurements  Reported 

Adjustments  must  be  made  from  time  to  time  in  the  fig- 
ures for  coal  on  hand,  as  sent  in  by  the  division  managers. 
The  measurements  of  coal  piles  and  calculations  based  on 
them  are  checked  in  the  comptroller's  office,  and  when  errors 
are  found  adjustment  must  be  made  and  reported  to  the  divi- 
sion manager  concerned.  A  memorandum,  accordingly,  will 
be  sent  to  him  of  the  amount  of  coal  debited  or  credited  to  his 
Fuel  Inventory  account  at  each  one  of  his  power  stations 
because  of  the  adjustment. 

This  notice  to  the  manager  should  give  (1)  the  amount  of 
coal  on  hand  for  the  power  station  in  question  at  the  end  of 
the  month,  according  to  the  main  office  records;  (2)  the 
amount  of  the  adjustment  necessary  to  make  the  figures  agree 


272 


"INSIDE"   ACCOUNTING  WORK 


with  those  of  his  own  report  (Form  109)  ;  and  (3)  the  cor- 
rect amount  remaining  on  hand  after  the  adjustment  is  made. 
A  copy  of  the  notice  should  be  sent  to  the  chief  engineer  or 
to  the  supervisor  of  power  plants. 

Statement  of  Cost  of  Coal 

Each  month  a  statement  should  be  prepared  in  the  comp- 
troller's office,  showing  the  cost  per  ton  at  which  fuel  was 
charged  off  to  operating  expenses  during  that  month  as 
follows: 

Cost  Per  Ton  of  Fuel  Charged  to  Operating  Expenses 
During- 


Cost  of 

Name  of 

Price  Per 

Unloading  and 

Total  Cost 

Power  Station 

Ton  Alongside 

Handling  Per 
Ton 

Per  Ton 

The  second  column  includes  the  invoice  price  of  the  freight 
charges,  either  by  rail  or  by  boat.  The  fourth  column  gives 
the  figure  or  the  average  price  at  which  the  coal  is  burned  out, 
as  just  explained  under  "Fuel  Inventory  Sub-ledger." 

In  preparing  this  statement  the  invoice  price  of  the  last  lot 
of  coal  should  be  ascertained  and  the  freight  charges  from  the 
last  freight  bills  paid  should  be  obtained  and  added,  to  give 
the  information  for  the  second  column.  The  difference 
between  that  figure  and  the  price  at  which  the  coal  is  charged 
represents  the  unloading  and  handling  charges.  Generally 
speaking,  the  price  per  ton  alongside  will  not  often  change. 
The  variation  in  the  price  will  be  almost  entirely  in  the  cost 
of  unloading  and  handling. 

The  value  of  this  statement  is  that  it  will  show  at  once 
whether  the  actual  price  of  the  coal  is  increasing  or  not  and 
whether  the  handling  is  done  in  an  economical  manner  at  each 


DETAIL   LEDGERS 


273 


power  station.  The  figures  giving  the  price  per  ton  alongside 
are  those  for  which  the  purchasing  agent  or  the  official  who 
is  charged  with  the  responsibility  of  obtaining  coal  is  responsi- 
ble. If  they  are  too  high  he  must  explain  the  reason,  but, 
of  course,  he  cannot  in  any  way  control  the  demurrage  nor  the 
expense  of  unloading,  which  is  a  matter  for  the  division  man- 
ager to  explain.  The  statement  should  be  sent  out  as  a  regu- 
lar supplement  to  the  power  station  statement,  and  copies 
should  be  furnished  to  the  persons  who  receive  the  copies 
of  that. 

Demurrage  charges  should  not  be  considered  as  freight  but 
charged  direct  to  the  operating  account,  after  having  been 
approved  by  the  engineer  in  charge  of  the  power  station  or  by 
the  manager. 

General  Stores  Sub-Ledger 

The  general  ledger  of  the  company  will  carry  merely  a 
controlling  account  called  "General  Stores."  As  it  is  neces- 
sary to  have  details  of  this  account  by  divisions,  and  also  to 
know  whether  all  invoices  passed  by  the  stores  keepers  have 
reached  the  comptroller's  office  to  be  paid,  it  is  accordingly 
necessary  to  keep  a  general  stores  sub-ledger,  arranged  by  col- 
umns headed  up  with  the  names  of  the  divisions  of  the  com- 
pany. It  is  one  of  the  most  important  and  inclusive  of  the 
detail  books.  As  vouchers  with  general  store  charges  come 
through  during  the  month  they  should  be  posted  in  this  book. 
The  number  of  the  voucher,  the  name  of  the  person  con- 
cerned, and  the  amount  of  each  bill  should  be  entered  in  the 
proper  division  columns,  and  the  total  of  the  postings  of  each 
voucher  carried  out  in  the  total  column. 

When  all  vouchers  for  the  month  have  been  posted  and 
the  total  checked  with  the  total  charge  to  general  stores  as 
shown  by  the  voucher  book,  all  debit  journal  entries  should  be 
posted;  then  all  credit  entries;  and  last,  the  bills  collectible. 


274  "INSIDE"   ACCOUNTING  WORK 

The  book  when  footed  for  the  month  and  this  total  adde. 
the  previous  totals,  should  equal  the  general  ledger  balance. 

General  Stores  Reconciliation  Reports 

Statements  should  then  be  made  reconciling  the  balance 
of  each  division  with  the  balance  as  shown  by  the  reports  sent 
in  by  division  stores  keepers. 

It  is  essential,  of  course,  to  have  the  division  stores  keep- 
ers' accounts  agree  with  the  records  in  the  main  office.  To 
this  end  the  stores  keepers  should  close  their  accounts  as 
regards  invoices  received  on  the  first  of  the  following  month. 
They  should  assume  that  all  invoices  which  have  left  their 
offices  for  the  comptroller's  office  prior  to  the  first,  of  the  fol- 
lowing month  and  which  cover  material  received  during  the 
preceding  month  will  be  taken  into  the  preceding  month's 
accounts,  and  that  all  invoices  sent  in  after  the  first  of  the 
month  will  be  taken  into  the  current  month's  account.  The 
voucher  clerks  in  the  comptroller's  office  should  take  care  to 
voucher  in  the  same  month  the  invoices  which  the  stores  keep- 
ers take  into  their  month's  accounts.  This  will  tend  to  reduce 
very  much  the  number  of  invoices  which  the  stores  keeper 
must  strike  off  from  his  current  list  and  add  to  that  of  the  fol- 
lowing month. 

In  sending  out  the  reconciliation  sheets  and  in  referring 
to  invoices  included  by  the  comptroller's  office  but  not  included 
by  the  division  stores  keepers,  or  vice  versa,  reference  should 
be  made  in  every  case  to  the  stores  keeper's  number  of  the 
invoice  referred  to.     (See  Chapter  XIII.) 

Stores  Issued 

When  the  reports  of  material  issued  from  storerooms  come 
in  monthly  from  the  stores  keepers  on  Forms  99  and  100, 
they  should  be  summarized  and  one  journal  entry  made  to 
cover  all  divisions.    The  items  ordinarily  are  all  charges,  but, 


DETAIL   LEDGERS 


275 


should  some  of  them  be  reported  as  credits,  they  should  be 
passed,  unless  the  item  is  large.  If  so,  the  comptroller's  office 
should  investigate. 

General  Stores  Statement 

A  statement  showing  movement  of  materials  and  supplies 
according  to  divisions  may  be  issued  each  month  after  the 
reconciliation  reports  have  been  sent  out.  The  following  gen- 
eral arrangement  or  form  may  be  used: 

First  Column  Name  of  division. 

Second  Column  Balance  on  hand  the  last  clay  of  previous 
month. 

Third  Column  Amount  received  during  the  current  month. 

Fourth  Column         Total  of  the  second  and  third  columns. 

Fifth  Column  Amount  issued  during  the  month. 

Sixth  Column  Balance  on  hand  the  last  day  of  the  cur- 

rent month. 

Seventh  Column  Balance  on  hand  the  last  day  of  the  cor- 
responding month  for  year  previous. 

If  this  statement  is  made  up  it  should  be  ready  to  be  sent 
out  by  the  chief  clerk  as  soon  as  possible  after  the  close  of  the 
month.  This  statement  might  be  enlarged  considerably,  as 
explained  in  Chapter  XIII. 

Scrap  Account 

A  columnar  book  similar  to  the  general  stores  sub-ledger 
should  be  provided  for  this  account  and  arranged  by  divisions. 
All  entries  to  this  account  in  the  general  ledger  should  be 
posted  and  the  book  balanced  at  the  end  of  the  month. 

Report  of  Scrap  Accumulated 

The  reports  of  scrap  accumulated  sent  in  monthly  by  the 
division  stores  keepers  (see  page  223)  must  be  summarized  and 


2/6 


"INSIDE"   ACCOUNTING   WORK 


a  journal  entry  made  charging  Scrap  account  for  the  different 
divisions  and  crediting  the  proper  operating  expenses.  Ordi- 
narily there  will  be  no  credits  to  authorizations  from  the  scrap 
reports,  but,  if  there  are,  the  chief  clerk  should  determine 
what  account  to  credit  before  the  journal  entry  is  made  up. 

Notice  of  Balances  to  Stores  Keepers 

When  the  scrap  ledgers  have  been  balanced  a  notice  of  the 
balance  of  each  division  should  be  made  up  on  Form  115  and 
sent  to  each  stores  keeper. 


THE  WESSEX  COMPANY 
MONTHLY  5CRAP  REPORT 

DIVISION MONTH  ENDING . 


Amount  on  hand  first  day  of  month 


accumulated  during  the  month  (see  below) . 
received  from  other  divisions   


Total 

Amount  sold  during  month 


transferred  during  month   _ 
Balance  on  hand  last  day  of  month. 


SCRAP  ACCUMULATED 


Kind  of  5crap        "Ions  or  Lbs     perTonorLb 


Price 


Total 


Credit 


Remarks 


Approved  Correct' 


Storeroom  Clerk 


Form  115.    Monthly  Scrap  Report— Comptroller's  Office.     Size, 
8y2  X  14. 


The  notices  will  be  O  K'd  by  the  stores  keepers,  returned 
to  the  comptroller's  ofhce,  and  placed  in  the  scrap  transfer 
file.    If  the  stores  keeper's  records  do  not  agree  with  the  bal- 


DETAIL    LEDGERS 


277 


ance  for  his  division  as  shown  by  this  notice,  he  should  notify 
the  comptroller's  office,  and  the  clerk  in  charge  of  the  matter 
should  immediately  check  up  and  adjust  the  difference  with 
him. 

Scrap  Expense  Account 

Scrap  Expense  is  a  clearing  account  to  which  should  be 
charged  each  month  the  cost  of  collecting  and  selling  scrap. 
It  should  be  cleared  monthly  by  distributing  the  cost  to  the 
various  operating  expenses  based  upon  the  report  of  scrap 
accumulated. 

An  analysis  of  this  account  should  be  kept  by  divisions  in 
one  of  the  sub-ledgers,  showing  the  cost  for  each  division  of 
the  collection  and  sale  of  scrap  each  month.  The  balance  of 
this  analysis  should  agree  with  the  ledger. 

This  cost  for  each  division  should  be  credited  each  month 
to  Scrap  Expense  and  charged  to  the  operating  expenses  of 
the  same  division,  prorated  among  the  different  accounts  in 
the  same  ratio  as  the  report  of  scrap  accumulated  was  cred- 
ited. As  it  will  be  impracticable  to  make  this  entry  on  the 
actual  figures,  it  can  be  made  each  month  on  the  basis  of  the 
previous  month's  cost  and  the  previous  month's  scrap  accumu- 
lation. At  the  end  of  the  year  care  should  be  taken  to  see  that 
the  account  is  in  balance. 

Auto  Expense  Sub-Ledgers 

Automobiles  and  automobile  trucks  have  come  into  general 
use  within  the  last  few  years.  There  are  machines  attached  to 
the  track  repair  service,  trucks  used  in  the  express  and  freight 
service  and  elsewhere,  cars  placed  at  the  disposal  of  officers, 
etc.  No  book  containing  general  accounting  information 
would  be  complete  without  some  information  as  to  how 
the  connected  costs  may  be  followed  up.  The  three  reports 
shown  below  are  used  for  this  purpose. 


2/8 


"INSIDE"   ACCOUNTING   WORK 


i.  A  pad  of  daily  report  blanks  (Form  116)  is  carried 
in  each  machine.  The  operator  fills  out  one  of  these  blanks 
each  day  and  forwards  it  to  the  division  manager.  It  is  to 
some  degree  analogous  to  the  day  card  made  out  by  the  con- 
ductors.   Both  sides  of  the  blank  are  used. 


Daily  E 

.epor 

THE  WESSEX  COMPANY 

:  of  Motor  Car  No Division 

Date 

Time 

Speedometer 

Purpose 

Used  By 

Driver 

Out 

in 

Diff 

Out  i  In  f  Diff 

1         ! 

1 

1 

I 

Note- 
Correct 

—Report  repairs  and  supplies  on  back  of  this  sheet. 
Annroved 

Checkec 

1 ... 

_ 

Form  116.     (a)   Motor  Car  Daily  Report  (face).     Size,  8l/2  X  6. 


Repairs  and  supplies  in  detail 

Sign   here. 
Correct   . . 


In  Charge  of  Repairs 


Form  n6.    (b)  Motor  Car  Daily  Report  (reverse). 


DETAIL   LEDGERS 


279 


2.  A  monthly  report,  which  is  merely  a  summary  of  the 
daily  reports,  is  sent  by  the  division  manager  to  the  comptrol- 
ler's office  on  Form  117. 


THE  WESSEX  COMPANY 

Month 191.... 

Send  this  report  to  Comptroller 

Date 

Mileage 

Gasoline 
Gallons 

Cylinder 
Oil 

Attention 
Hours 

Repairs  and 

Remarks 

Material  & 

Laborin  Detail 

1 

2 

3 

r%T 

I 

30  I 

| 

I 

31    I 

i 

I 

Totals 

! 

I 

Correct                                             Sign  Here 

Form    117.  •    Motor    Car    Monthly    Report — Division    Manager. 
Size,  8y2   X   11. 


3.  On  or  about  the  20th  of  the  following  month,  or  as 
soon  as  the  books  are  closed,  a  monthly  statement  is  prepared 
on  Form  118  and  forwarded  to  the  president  and  other  offi- 
cials, showing  the  detailed  costs  for  each  one  of  the  cars 
operated.     Or  a  quarterly  statement  might  suffice. 

In  order  to  compile  the  above  report  in  the  comptroller's 
office  each  month,  a  detailed  automobile  expense  ledger  should 
be  provided  somewhat  like  the  general  expense  ledger.     The 


280 


"INSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 

STATEMENT  SHOWING  THE  COST  OF  MAINTAIN- 
ING AND  OPERATING  EACH  AUTOMOBILE  DUR- 
ING MONTH  OF 1917 

Car 
No. 

Division 

Gas- 
oline 

Lubri- 
cants 

Tires, 
Chains 

and 
Tubes 

Other 
Supplies 

Other 
Repairs 

Miscel- 
laneous 

Total 

1 

2 

22 


Form    118.      Motor   Car    Monthly    Report — Comptroller.      Size, 
lilA  X   14. 

page  will  be  headed  with  the  name  or  number  of  the  automo- 
bile, and  the  columns  with  the  names  of  the  expense  accounts 
used. 

An  account  should  be  opened  in  the  general  ledger  under 
some  suitable  heading  such  as  "Automobile  Expense,"  and 
instructions  issued  that  all  expenses  should  be  so  charged. 
During  the  month  such  charges  should  be  anaylzed  and  posted 
to  the  automobile  expense  ledger  from  which  the  monthly 
statements  are  taken.  At  the  end  of  the  month  the  account  is 
closed  out  to  the  appropriate  operating  account  or  accounts. 

Replaced  Machinery  Stock  Account 

The  detailed  books  thus  far  mentioned  are  all  related  to 
what  may  be  called  current  earnings,  expenses,  and  supply 
accounts.    Two  others  may  be  mentioned  which  are  distinctly 


DETAIL   LEDGERS  28 I 

important  but  which  relate  in  a  way  to  capital  accounts.  One 
of  these  is  the  Replaced  Machinery  Stock  account  which  is 
opened  in  the  general  ledger  near  the  section  where  the  store- 
room accounts  are  found.  To  this  account  is  charged  the 
present  value  of  machinery  and  apparatus  dismantled  and 
stored  away,  either  to  be  sold  or  to  be  used  at  some  future  time 
at  some  other  point.  The  account  might  be  given  some  other 
name,  but  this  one  defines  it  exactly.  It  will  apply  largely  to 
power  station  apparatus.  A  good  many  of  the  appropriations 
coming  from  the  engineer's  office  show  charges  against  this 
account,  but  no  charges  must  be  entered  on  the  books  until  a 
detailed  report  has  been  made  as  to  the  machinery  removed 
and  a  full  description  of  it  given,  together  with  its  location,  etc. 

It  is  very  important  that  a  careful  and  complete  record  of 
all  the  items  charged  to  this  account  be  kept  in  the  office.  A 
book  should  be  provided  lettered  on  the  outside  "Replaced 
Machinery  Stock  Account,"  in  which  should  be  entered  a  full 
description  of  all  machinery  and  apparatus  charged.  Provi- 
sion should  be  made  first  for  reference  to  the  journal  entry 
number  under  which  the  charge  is  made ;  then  a  full  descrip- 
tion of  the  machinery  or  apparatus,  giving  the  name  of  the 
manufacturer  and  the  serial  number  of  the  instrument  or 
machine,  if  it  has  one,  each  piece  being  listed  separately  and 
the  individual  value  stated.  Then  the  place  where  the  material 
is  stored  and  the  name  of  the  man  who  has  it  in  custody 
should  be  indicated.  The  rest  of  the  book  should  be  used  for 
recording  the  sale  or  use  of  this  machinery,  as  follows: 

When  one  of  the  instruments  or  pieces  of  machinery  is 
sold,  the  bill  number  under  which  it  is  sold  and  the  amount 
which  is  obtained  for  it  should  be  entered  in  this  book  on  the 
same  line  where  the  instrument  referred  to  is  recorded  but  on 
the  opposite  page ;  any  difference  between  the  amount  received 
from  this  sale  and  the  value  placed  on  it  when  it  went  into  the 
account  should  be  adjusted.     The  difference  between  the  two 


2g2  "INSIDE"   ACCOUNTING  WORK 

sides  of  this  book  should  be  the  balance  entered  in  the  general 
ledger. 

This  will  not  be  a  very  active  account,  probably,  but  it 
should  be  very  accurately  written  up.  If  any  information  is 
not  available  that  is  needed  to  complete  the  record,  the  matter 
should  be  taken  up  with  the  engineering  department. 

Property  and  Equipment  Withdrawal  Account 

The  other  account  to  be  noted  here  is  in  a  sense  comple- 
mentary to  that  just  mentioned.  When  property  or  equipment 
which  at  the  time  stands  in  the  capital  accounts  is  sold,  the 
amount  received  from  the  sale  should  be  credited  temporarily 
to  a  Property  and  Equipment  Withdrawal  account. 

To  complete  the  record,  steps  should  be  taken  at  once  to 
obtain  from  the  proper  parties  full  information  as  to  the 
articles  sold,  with  the  replacement  value,  the  date  purchased, 
and  the  distribution  of  the  replacement  value  according  to  the 
construction  classification.  It  should  also  be  ascertained 
whether  or  not  the  items  sold  have  been  replaced  and,  if  so, 
when  replacement  was  made  and  how  it  was  charged  in  the 
accounts.  If  this  information  comes  in,  it  should  be  carefully 
verified.  When  all  the  information  is  obtained,  a  journal 
entry  should  be  made  crediting  the  proper  capital  account  with 
the  replacement  or  cost  value  in  the  following  manner: 

Property  and  Equipment  Withdrawal  account  should  be 
charged  with  the  amount  which  was  credited  to  that  account 
when  the  piece  of  machinery,  or  whatever  it  might  be,  was 
sold  or  withdrawn,  and  the  balance  over  the  sale  price,  if  any, 
charged  to  the  proper  operating  or  other  accounts  as  may  be 
determined. 

Other  Accounts  and  Records 

There  are  a  number  of  other  matters  which  are  even  less 
related  than  the  two  accounts  just  mentioned  to  the  current 


DETAIL   LEDGERS 


283 


earnings,  expenses,  and  accounts  discussed  in  this  chapter,  but 
which  must  also  be  covered  to  some  extent  in  the  detail 
ledgers. 

Fire  Insurance  Records 

As  a  general  rule,  insurance  is  carried  by  outside  insurance 
companies  and  therefore  no  special  system  of  accounts  need 
be  kept,  merely  a  list  or  record  of  the  policies  and  what  they 
cover.  If  a  fire  occurs,  however,  the  adjustment  with  the 
insurance  company  and  the  repair  or  the  replacing  of  property 
must  be  looked  after.  Formerly,  these  costs  were  charged 
direct'  to  operating  expenses,  thereby  giving  no  individual 
accounting  of  each  fire,  a  record  of  which  is  required  by  the 
insurance  adjuster.  It  seems  much  more  advisable  to  open 
a  special  ledger  account  for  insurance  expense  through  which 
all  charges  and  credits  may  be  worked  out. 

To  this  account  are  charged  the  labor  and  material  costs 
in  connection  with  the  repairs  to  cars,  buildings,  and  other 
property  necessitated  through  damage  by  fire.  A  detail  of 
the  storeroom  report  and  the  pay-roll  distribution  of  the  serv- 
ice will  be  given  in  each  instance,  and  direct  reference  made 
at  the  time  to  the  property  damaged  and  the  date  of  the  fire. 
Thus,  a  good  and  complete  insurance  record  may  be  kept. 

Tax  Records 

In  order  to  comply  with  the  requirements  of  state  laws  a 
clear  record  of  taxes  should  be  kept.  But  if,  as  is  not  infre- 
quent, the  company  maintains  a  tax  commissioner,  the  tax 
records  will  probably  be  kept  in  the  commissioner's  office  and 
will  not  be  considered  a  part  of  the  accounting  records  of  the 
company  in  the  same  sense  as  if  kept  by  the  accounting  depart- 
ment. Some  record,  however,  must  be  kept  in  the  accounting 
department  and  it  may  be  covered  by  a  detailed  ledger. 

The  records  to  be  kept  depend  largely  upon  the  kind  of 


284 


"INSIDE"   ACCOUNTING  WORK 


taxes  and  the  methods  of  assessment  in  the  particular  town, 
city,  or  state.  When  taxes  are  assessed  on  the  property  of  the 
company — real  estate,  rolling  stock,  securities  held,  cash  in 
bank,  etc. — the  records  should  clearly  show  the  assessed  value 
of  this  property,  and  the  accountant  should  be  careful  to  see 
that  the  proper  accruals  are  made.  When  taxes  are  of  this 
nature,  more  detailed  accounting  is  necessary  than  in  cases 
where  the  railroad  company  pays  its  taxes  to  the  state  in  the 
shape  of  an  assessment  upon  its  earnings.  In  the  latter  case 
the  records  are  very  simple. 

Sometimes  taxes  are  levied  by  cities  on  gross  earnings 
received  within  the  fiscal  year.  If  this  tax  is  levied  on  the  earn- 
ings received  within  the  city  limits  when  the  street  railroad 
is  entirely  within  the  city,  the  accounting  is  not  very  difficult. 
But  if,  as  is  generally  the  case,  the  street  railway  tracks  are 
both  within  and  without  the  city,  the  earnings  within  the  city 
limits  must  be  prorated  upon  a  mileage  basis  or  in  some  such 
way,  unless  the  fare  limits  or  zones  are  coincident  with  the 
city  lines.  Even  then  special  accounting  will  be  necessary  in 
the  matter  of  conductors'  runs. 

No  sample  of  accounting  records  can  well  be  given  under 
this  head,  as  the  records  for  different  states,  cities,  and  towns 
are  so  widely  different  at  the  present  time;  even  though  a  sys- 
tem were  shown  which  could  be  adapted  to  one  city,  it  would 
be  entirely  different  from  one  to  be  applied  to  some  other  city. 

Interest  and  Deposit  Accounts 

Nearly  every  street  railway  company  has  bonds  of  some 
kind  outstanding,  and  as  a  general  thing  when  bond  interest 
is  due  or  just  prior  to  the  time  when  it  is  due,  the  money  for 
payment  of  the  same  is  deposited  with  some  bank  or  trust 
company,  which  in  turn  pays  the  bond  coupons  as  they  are 
presented.  One  method  of  handling  the  deposits  to  pay  the 
coupons,  with  the  journal  entries  required,  is  shown  below: 


285 


DETAIL   LEDGERS 

Interest  on  Funded  Debt $ 

To  Unmatured  Coupon  Interest  Accrued.  $ 

For  interest  accrued  during  month  of , 

191..,  on  the  following  bonds    (describe). 
(This  entry  to  be  made  each  month.) 

Draw  voucher  to  bank  or  party  to  pay  interest;  this 
voucher  to  be  drawn  up  before  coupons  are  due.  Charge  Cou- 
pon Special  Deposit  (name  of  bank). 

Unmatured  Coupon  Interest  Accrued $ 

To  Coupon  Interest  Matured $ 

(This  entry  to  be  made  month  interest  falls 
due.) 

Coupon  Interest  Matured  (name  bonds) $ 

To    Coupon    Special    Deposit     (name    of 

bank)  $ 

(This  to  be  made  as  paid  coupons  come  in.) 

There  may  perhaps  be  other  kinds  of  interest  and  also 
other  kinds  of  deposit  accounts,  but  it  is  not  the  purpose  of 
this  book  to  discuss  in  any  way  the  financial  part  of  the  street 
railway  business,  which  is  quite  adequately  treated  in  other 
works. 

Reserves 

Nearly  every  street  railway  corporation  provides  funds  for 
certain  specified  purposes  which  are  known  as  reserves.  Pre- 
sumably the  most  important  one  in  connection  with  the  operat- 
ing part  of  the  business  is  the  reserve  for  accidents  or 
damages.  This  reserve  is  created  by  charging  to  operating 
expenses  a  certain  amount  month  by  month  and  crediting  a 
like  amount  to  an  appropriate  reserve  account.  At  the  end 
of  the  year  a  statement  should  be  obtained  from  the  claim 
agent  or  the  legal  department  in  charge  of  accidents,  and  the 


2g6  "INSIDE"   ACCOUNTING   WORK 

reserve  account  adjusted  according  to  the  total  of  the  esti- 
mated liability  at  the  close  of  the  fiscal  year.  Among  the  many 
other  reserves  are  those  covering  depreciation  and  insurance, 
the  latter  providing  for  the  various  kinds  of  risks,  fire,  bur- 
glar, boiler,  fidelity,  or  casualty  insurance,  etc.  Each  one  of 
the  reserve  accounts  may  necessitate  some  separate  accounting, 
if  the  company  is  large  and  detailed  information  is  desired. 

Accident  and  Damage  Reserve 

As  regards  the  accident  and  damage  reserve,  Montgomery 
in  his  excellent  book  entitled  "Auditing,  Theory  and  Prac- 
tice," 19 1 7  edition,  says: 

"Many  companies  create  an  accident  reserve  by  crediting 
to  such  an  account  and  charging  to  operating  expenses  a  cer- 
tain percentage  of  the  gross  earnings.  Payments  in  settle- 
ment of  claims  are  charged  against  the  reserve.  This  plan  is 
preferable  to  that  of  charging  accident  payments  directly  to 
operating  expenses,  as  it  equalizes  the  charge  to  successive 
fiscal  periods,  and,  if  the  charge  is  ample,  creates  a  reserve  for 
those  claims  which  are  unsettled  at  the  end  of  each  period. 
The  plan  must  be  intelligently  used.  Some  companies  use  too 
low  a  percentage  and  carry  the  resulting  debit  balance  in  the 
reserve  account  along  from  one  period  to  another  as  a  deferred 
charge  to  operations.  Obviously,  payments  for  accidents 
occurring  in  one  period  are  not  of  the  slightest  benefit  to  the 
operations  of  a  future  period,  and  if  a  debit  balance  develops 
in  an  accident  reserve  account  it  should  be  forthwith  written 
off.  Such  a  condition  is  sometimes  due  to  an  unusually  seri- 
ous and  costly  accident,  which  is  not  likely  to  occur  again  soon, 
and  it  may  not  be  necessary  to  raise  the  percentage  of  gross 
earnings  credited  to  the  accident  reserve.  As  already  stated, 
however,  the  overdraft  in  the  reserve  account  should  be  imme- 
diately written  off,  as  it  is  not  an  asset  in  any  sense  of  the 
word." 


DETAIL  LEDGERS 


287 


Depreciation  Reserves 

As  regards  depreciation  reserves  the  Interstate  Commerce 
Commission  in  their  "Uniform  System  of  Accounts  for  Elec- 
tric Railways,"  issue  of  1914,  require  street  railways  under 
their  jurisdiction  to  set  up  a  reserve  for  equipment,  but  clo 
not  as  yet  require  a  reserve  for  depreciation  of  way  and  struc- 
tures or  building  and  power  plant  machinery.  It  is  a  very 
difficult  matter  to  determine,  and  Montgomery  in  the  work 
just  cited,  writes  on  this  subject  as  follows: 

"Depreciation  of  plant — or,  if  the  word  'depreciation'  has 
an  unpleasant  sound,  the  term  'accruing  renewals  and  replace- 
ments' may  be  substituted — is  a  most  important  subject  in 
connection  with  electric  railways.  Up  to  a  few  years  ago  rail- 
way operators,  and  especially  promoters,  would  not  admit  that 
there  was  any  necessity  whatever  for  the  inclusion  of  depre- 
ciation charges  in  the  operating  accounts.  Their  stock  argu- 
ment was  that  the  franchises  increased  in  value  more  rapidly 
than  the  physical  property  deteriorated,  and  consequently 
there  was  no  depreciation  in  the  property  as  a  whole.  The 
fact  that  the  increase  in  franchise  values  would  not  produce 
funds  wherewith  to  make  replacements  when  they  were  finally 
needed  was  ignored.  Since  the  repeated  puncturing  of  this 
fallacy  by  the  bankruptcy  of  companies  which  proceeded  on 
such  an  unsound  basis,  railway  operators  have  reluctantly 
come  to  admit  the  necessity  for  taking  account  of  depreciation, 
until  at  the  present  time  practically  all  engineers  of  high  stand- 
ing consider  it  an  item  of  operating  expense.  It  is  a  satisfac- 
tion that  the  correctness  of  a  principle  for  which  at  one  time 
almost  no  one  but  accountants  contended  has  at  last  been 
recognized.  In  cases  where  companies  have  not  made  any 
allowance  for  accruing  depreciation,  the  auditor  is  not  war- 
ranted in  giving  a  certificate  unless  it  contains  a  qualification 
plainly  calling  attention  to  the  omission  of  depreciation 
allowances." 


2gg  "INSIDE"   ACCOUNTING  WORK 

The  question  of  reserves  is  one  that  should  be  considered 
upon  its  individual  merits  by  each  company. 


Sinking  Funds 

Under  this  heading  there  may  be  several  funds  provided 
by  the  company.  As  the  term  is  generally  used,  funds  are  set 
aside  periodically  and  invested  in  some  good  property  or 
securities,  so  that  there  will  be  sufficient  funds  at  the  end  of  a 
certain  term  or  period  to  take  up  an  issue  of  bonds  or  provide 
funds  for  some  other  contingency. 

The  records  for  these  funds  depend  entirely  upon  the 
nature  of  the  fund,  and  it  would  seem  that  this  is  another  case 
where  each  fund  should  be  considered  upon  the  merits  of  the 
case.  Wherever  the  question  of  sinking  funds  is  involved 
there  is  always  much  special  work  for  the  accountant,  as  in 
a  great  many  ways  sinking  fund  provisions  in  regard  to  mort- 
gages, etc.,  are  not  always  clear.  It  would  seem  from  obser- 
vation of  the  present  day  trend  that  sinking  funds  are  not 
being  used  as  much  as  in  years  past,  the  presumable  reason 
being  the  changed  conditions  of  the  last  few  years.  By  this 
is  meant  that  the  street  railway  business  has  become  better 
established ;  it  would  seem  that  there  is  not  the  same  neces- 
sity for  sinking  funds  as  when  the  business  was  of  a  more 
unsettled  character.  Another  reason  for  not  using  the  sinking 
fund  method  is,  perhaps,  that  the  different  street  railway  cor- 
porations need  the  money  for  use  in  the  business  instead  of 
buying  some  long-term  security  or  tying  up  the  funds  in  some 
similar  way. 

Leading  Accountants  on  Sinking  Fund  Problems 

Some  of  the  problems  in  sinking  fund  accounting  have 
been  worked  out  in  the  past  by  leading  accountants.  Three 
representative  opinions  may  be  put  side  by  side. 


DETAIL   LEDGERS  289 

Montgomery  in  "Auditing,  Theory  and  Practice,"  says: 
"Sinking  fund  requirements  to  retire  bonds,  etc.,  must  not  be 

confused  with  depreciation  allowances Sinking  fund 

installments  are  capital  expenditures  and  do  not  properly 
appear  among  operating  expenses,  but  should  be  stated  as 
deductions  from  net  profits  when  ascertained." 

Dickinson  in  "Accounting  Practice  and  Procedure"  says 
"Sinking  Fund  or  Debt  Extinguishment  Reserves  are  not  in 
theory  a  charge  against  Income,  for  the  reason  that  they  do  not 
represent  a  loss  or  expense,  but  the  extinction  of  an  existing 
liability.  Inasmuch,  however,  as  in  most  cases  the  only  source 
out  of  which  such  redemption  reserve  can  be  provided  is  the 
surplus  earnings,  it  is  quite  usual  to  insert  a  provision  in  trust 
deeds  that  the  sinking  fund  reserve  is  to  be  provided  out  of  the 
profits  of  the  year.  The  discharge  of  liabilities  involves  either 
a  corresponding  reduction  in  assets,  or  the  accumulation  of 
other  liabilities  or  surplus.  A  reduction  in  current  assets  or 
the  accumulation  of  other  liabilities  as  a  substitute  for  bonded 
indebtedness  is  clearly  objectionable,  and  it  is  therefore  desir- 
able that  the  amount  applied  each  year  to  sinking  fund  pur- 
poses should  be  offset  by  the  retention  in  the  business  of  a 
corresponding  amount  of  profit,  which  should  be  transferred 
either  to  a  special  reserve,  or  in  reduction  of  some  fixed  asset 
account  by  way  of  provision  for  depreciation  or  otherwise." 

Some  accountants  in  the  past  have  confused  sinking  funds 
with  sinking  fund  reserves  and  this  point  is  well  covered  by 
W.  H.  Force,  Jr.,  in  the  Electric  Railway  Journal  of  Septem- 
ber 23,  1916.  Mr.  Force  says:  "There  is  considerable  differ- 
ence between  a  sinking  fund  and  a  sinking  fund  reserve, 
although  each  title  is  sometimes  loosely  applied  to  the  other. 
Much  of  the  confusion  is  probably  caused  by  the  fact  that  the 
term  'Reserve'  is  used  in  connection  with  banking  and  insur- 
ance in  an  entirely  different  sense  from  that  in  general 
accounting  practice.    Bankers  consider  a  reserve  analogous  to 


2o0  "INSIDE"   ACCOUNTING  WORK 

cash  or  an  equivalent  of  cash,  but  in  accounting  phraseology 
cash  and  reserve  are  not  synonymous.  'A  sinking  fund  in  the 
strict  sense  is  a  fund  raised  by  annual  contributions  for  the 
purpose  of  providing  means  of  paying  off  a  funded  debt'  (Hat- 
field). 'A  fund  may  be  defined  as  a  stock  or  accumulation  of 
assets  either  money  or  considerable  wealth  brought  together 
for  a  particular  purpose'  ( Pace) .  On  the  other  hand  a  sinking 
fund  reserve  may  be  defined  as  simply  a  backing  total  for  an 
account." 

As  will  be  seen  from  the  above,  there  are  so  many  ramifi- 
cations to  the  question  of  sinking  funds  that  no  definite 
method  of  accounting  could  be  laid  down  without  having  full 
details  as  to  the  facts  in  the  case. 


CHAPTER    XIX 

ACCOUNTS   RECEIVABLE   AND   COLLECTIONS 

Making  Out  Bills 

Great  care  should  be  taken  to  see  that  all  bills  are  made  out 
upon  receipt  of  proper  information  and  that  they  are  properly 
recorded  on  the  books  of  the  company. 

The  business  of  a  street  railway  company  is  essentially  a 
cash  business,  since  the  company  obtains  its  money  at  the  time 
service  is  performed  or  in  advance  through  ticket  sales  and 
other  prepayments.  There  are  other  items  of  revenue,  how- 
ever, which  are  sometimes  deferred,  such  as  charges  for  char- 
tered cars  and  for  express  and  freight  shipments,  returns  for 
advertising  privileges,  station  rentals,  sales  of  power,  scrap 
material,  etc.  To  handle  all  these  necessitates  the  maintenance 
of  careful  invoice  records  of  bills  issued  for  collection. 

In  the  office  of  some  street  railway  companies  the  files  are 
full  of  memoranda  from  which  bills  should  have  been  made 
out.  Memoranda  concerning  chartered  cars  and  similar  ser- 
vices rendered  are  carried  in  the  desk  of  a  clerk  or  even  of  a 
superintendent,  doubtless  with  the  object  of  saving  a  little 
accounting  labor  in  case  the  debtor  should  pay  the  bill  within 
a  day  or  two,  thus  making  the  transaction  a  cash  one  that  may 
be  entered  directly  in  the  cash  book.  But  the  fact  is  that  some 
of  those  memoranda  may  be  lost  and  if  the  debtor  does  not 
voluntarily  come  to  the  office  to  pay  the  bill  it  may  never  be 
paid.  If  the  bills  are  made  out  as  they  should  be  and  immedi- 
ately recorded  on  the  books,  it  is  simply  a  matter  of  collection, 
as  the  record  stands  until  the  bill  is  paid. 

291 


292 


"INSIDE"   ACCOUNTING   WORK 


No  attempt  will  be  made  here  to  go  deeply  into  the  subject 
of  collecting  accounts — a  matter  which  is  sufficiently  covered 
by  several  standard  books.  There  are  several  points  of  inter- 
est, however,  to  those  in  the  street  railway  business,  such  as 
preparing  and  collecting  bills  against  parties  for  cutting  over- 
head wires  to  allow  for  the  moving  of  buildings,  and  issuing 
bills  against  towns  or  cities.  These  points  will  be  detailed 
later  in  the  chapter. 


Forms  for  Bills 

A  useful  form  for  bills  collectible  is  the  following  Form 
119. 


It  is  furnished  in  three  sizes. 


THE  WESSEX  COMPANY 

ACCOUNTING  DEPARTMENT 


'  In  making  settlement 

Give  No. 

Registered  in 191 

Ledger  Folio 


To  THE  WESSEX  COMPANY,  Dr. 

PLEASE  REMIT  THE  AMOUNT  AND  SEND  THIS  BILL  WITH  IT  TO  THE  TREASURER.        If  further 
information  is  required,  address  the  Comptroller 


Correct. 

Approved, 


Approved. 


Certified  forfeyment, 
Approved, 


Comptroller 


Vice-President 


Received 


191. 


.Dollars  in  full  payment  of  above  account 

THE  WESSEX  COMPANY 


Form  119.     Bills  Collectible  Form.     Size,  8z/2   X   Sy2. 

Approval  of  Bills 

As  a  general  rule  bills  are  prepared  in  the  comptroller's 
office,  but  it  has  been  found  expedient  to  allow  some  of  them  to 


ACCOUNTS    RECEIVABLE   AND   COLLECTIONS 


293 


be  prepared  in  the  offices  of  the  division  managers,  the  stores 
keeper,  etc.  In  all  cases  when  these  bills  which  are  prepared 
outside  reach  the  comptroller's  office,  they  should  be  examined 
by  the  head  bill  clerk  to  insure  correctness  of  form,  etc. 
The  head  bill  clerk  initials  them  and  presents  them  to  the 
comptroller,  and  if  approved  by  the  comptroller  they  are  sent 
to  the  bill  register  desk  and  regularly  registered.  All  bills  are 
made  up  either  in  duplicate  or  with  a  copy  on  "chemical  sec- 
onds" or  other  cheap  paper.  They  are  typewritten  so  that  no 
time  is  lost  in  making  a  copy  for  the  files  in  the  comptroller's 
office.  When  the  bills  are  ready  they  should  be  mailed 
promptly. 

In  making  up  the  bills  care  should  be  taken  to  condense 
as  much  as  possible.  When,  for  example,  notices  are  received 
to  bill  a  city,  town,  or  school  district,  such  notices  should  be 
held  and  one  bill  made  up  at  the  end  of  the  month,  thus  saving 
accounting  work,  unless,  of  course,  the  cities  require  a  bill  for 
each  order  so  as  to  keep  separate  the  accounts  of  their  different 
departments. 

Bills  Collectible  Register 

A  careful  record  of  all  bills  issued  should  be  kept  in  a  bills 
collectible  register.  Form  120  is  shown  here  as  an  illustration 
of  a  book  of  this  kind. 

Bills  will  be  registered  throughout  the  month,  and  at  the 
end  of  the  month  the  bills  register  should  be  closed  or  footed 
and  an  entry  for  the  general  journals  made  up,  the  body  of 
which  should  read  somewhat  as  follows:  "For  Bills  Collect- 
ible Register   in    19 as   Per   Bills 

Collectible  Register  No Page to   "     (Then 

give  the  names  of  the  accounts  which  should  be  credited  in 
the  usual  way.) 

After  bills  have  been  registered  they  are  ready  for 
mailing. 


294 


"INSIDE"   ACCOUNTING  WORK 


ACCOUNTS    RECEIVABLE   AND   COLLECTIONS 


295 


Unpaid  Bills 

As  soon  as  possible  after  the  close  of  the  month,  a  list  of 
all  unpaid  bills  should  be  drawn  off  on  Form  121.     This  list, 


THE  WES5EX  COMPANY 
LIST  OF  UNCOLLECTED  BILLS  COLLECTIBLE 

V* 

Date  of 
Bill 

Month 
Registered 

Bill 
Number 

NAME 

AMOUNT 

Date 
Collected 

Date  of  Letters 
Requesting  feyment 

L—      -^ 

=— 

1 1 

= 1 

^ 

TOTAL  TORWARD 

Form   121.     List  of  Uncollected  Bills.     Size,  8]/2    X    14. 


as  soon  as  completed  and  footed,  should  be  handed  to  the  head 
bookkeeper,  who  will  check  it  with  the  balance  in  the  general 
ledger  and  if  the  statement  is  in  balance  will  certify  it  and  pass 
the  list  to  the  comptroller  for  inspection.  Needless  to  say,  if 
the  footing  of  the  list  does  not  agree  with  the  figures  in  the 
general  ledger,  the  head  bill  clerk  will  have  to  check  his  work 
and  locate  the  errors,  calling  upon  the  head  bookkeeper  for 
assistance  if  necessary. 

As  bills  are  paid  each  day  they  should  be  posted  from  the 
cash  book  to  the  bills  collectible  register  and  also  to  the  regis- 
ter index.  It  is  important  that  the  bills  which  are  registered 
each  day  be  at  the  same  time  posted  to  this  index  and  that  all 
cash  payments  or  cancellations  be  also  posted  to  the  index 
each  day,  so  that  it  will  always  show  the  exact  amount  due 
from  any  firm  or  individual. 

A  convenient  form  for  such  a  register  index  is  shown  in 
Form  122. 


296 


"INSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 

NAME 

ATOBESS 

r° 

MONTH 

BILLS  COLLECTIBLE. 
NUMBER 

FOL   v 

DCBIT5 

CREDITS    v 

fa 

HOW  5ETTLED 

DATE 

— ' 

, 

-  - 

Form  122.     Bills  Collectible  Index  or  Ledger.     Size,  12  X   11J/2. 

It  is  a  decided  convenience  to  use  a  loose-leaf  book.  When 
a  leaf  has  been  filled  on  both  sides  and  all  the  bills  on  it  paid, 
it  may  be  taken  out  and  put  in  a  transfer  binder.  In  the  same 
way  leaves  containing  the  paid  accounts  of  persons  who  have 
moved  out  of  town  may  be  placed  in  a  transfer  binder  and 
help  to  relieve  the  main  book  of  dead  wood,  leaving  it  free  for 
accounts  which  are  open. 


Collecting  Bills 

The  collection  of  bills  and  accounts  is  a  very  important 
matter.  All  bills  should  be  collected  promptly.  Regular 
statements  should  first  be  sent  out;  then  letters;  and  finally 
bills  that  have  remained  uncollected  for  sixty  days  should  be 
referred  to  the  comptroller  to  take  up  with  the  legal  depart- 
ment if  necessary. 

There  are  sometimes  bills  of  a  special  nature,  some  ema- 
nating from  the  offices  of  the  division  managers  and  others 
from  the  comptroller's  office,  requiring  special  attention. 

Bills  for  Cutting  Wires 

When  a  division  manager  is  asked  to  cut  wires  in  order  to 
permit  moving  of  buildings  across  or  along  the  tracks,  or  when 


ACCOUNTS    RECEIVABLE   AXD    COLLECTIONS 


297 


he  finds  that  moving  such  buildings  is  going  to  cause  the  com- 
pany increased  expense  by  requiring  the  cars  to  turn  back  on 
a  route  before  going  to  the  end  of  the  line,  or  that  it  will  inter- 
fere in  some  other  way  with  the  car  service,  the  manager 
should  endeavor  to  obtain  a  statement  in  writing  from  the 
owner  or  contractor  that  he  will  pay  the  company  any  expense 
entailed,  including  the  cost  of  cutting  and  replacing  wires,  the 
cost  of  turn-backs,  starters,  etc.  If  the  manager  is  unable  to 
secure  such  an  agreement  voluntarily,  he  should  trv  to  induce 
the  local  authorities  to  refuse  to  grant  a  permit  until  the 
owner  or  contractor  has  agreed  to  reimburse  the  company. 

Bills  for  Park  Rentals,  etc. 

All  bills  for  park  rentals,  house  rentals,  station  room 
rentals,  etc.,  should  be  prepared  on  rent  bill  forms  similar  to 
Form  123.      These  bills  should  be  sent  to  the  rent  agent  to 


In  making  settlement 

Give  No 

Registered  in. 
Ledger  Folio- 


THE  VVE55EX  COMPANY 

ACCOUNTING  DEPARTMENT 
RENT  BILL 


.«!_ 


To  THE  WE5SEX  COMPANY,  Dr» 
Please  remit  the  amount  and  send  this  bill  with  it  to  the  Rent  Agent. 


Correct. 


Approved, 


Exam'd  &  RegistU 
Approved, 


-I9!_ 


Comptroller 
ViccPreidfni" 


.191 Received. 


.Dollars  in  full  payment  of  above  account 


for  THE  WCSSEX  COMPANY 


Form  123.     Rent  Bill.     Size,  S^   X  ffl. 


298 


"INSIDE"   ACCOUNTING   WORK 


collect  if  such  an  official  is  employed;  if  not,  they  are  col- 
lected by  the  comptroller's  office  in  the  regular  way. 

Handling  Bankrupt  Accounts 

All  bankrupt  accounts  should  be  handled  at  the  comptrol- 
ler's office  by  the  clerk  in  charge  of  the  bills  and  accounts 
receivable,  or  by  the  head  bookkeeper.  Should  the  account 
happen  to  be  carried  at  some  local  office,  the  local  cashier  at 
that  point  should  send  the  necessary  papers  to  the  main  office 
to  be  filed  with  the  bankruptcy  court.  The  method  of  pro- 
cedure should  be  as  follows: 

The  necessary  papers  should  be  prepared  and  properly 
executed  by  the  comptroller,  ready  to  file  with  the  referee  in 
bankruptcy  or  with  the  proper  federal  officer,  whatever  his 
title  may  be.  On  the  day  when  the  papers  are  filed  with  the 
referee,  a  letter  should  be  sent  to  the  local  cashier  of  the  divi- 
sion in  which  the  bill  is  carried,  if  it  is  a  local  account,  advis- 
ing him  of  the  fact  that  the  necessary  papers  for  the  bill  in 
question  have  been  filed  and  instructing  him  to  make  a  nota- 
tion in  his  records  to  that  effect. 

If  the  account  is  an  electric  light  or  gas  account  (in  case 
the  street  railway  company  is  engaged  in  either  business  as  a 
side  issue),  and  a  meter  deposit  is  held  by  the  local  cashier,  the 
cashier  should  apply  the  amount  of  the  meter  deposit  to  the 
credit  of  the  account,  and  a  proper  journal  entry  should  be 
made  at  the  main  office  to  provide  for  it  as  follows:  charge 
Meter  Deposits  of  the  proper  division  and  credit  the  consum- 
er's account  of  the  proper  department,  or  division,  as  the  case 
may  be. 

The  local  cashier  should  note  on  his  list  of  delinquent 
creditors  the  fact  that  bankruptcy  papers  have  been  filed. 

When  the  cash  in  settlement  of  these  bankruptcy  claims  is 
received  at  the  main  office,  it  should  be  credited  to  the  proper 
consumer's  account  or  Accounts  Receivable,  in  whichever  item 


ACCOUNTS    RECEIVABLE    AND    COLLECTIONS         299 

the  amount  is  carried,  which  of  course  may  readily  be  ascer- 
tained by  referring  to  the  delinquent  list. 

The  local  cashier  should  then  be  advised  of  the  receipt  of 
this  money,  and  be  directed  to  mark  its  receipt  in  his  ledger 
and  to  state  that  credit  has  been  given  to  the  proper  account 
at  the  main  office. 

Other  bankrupt  accounts  should  be  handled  similarly,  that 
is,  they  should  be  taken  into  the  account,  "Accounts  Receiv- 
able," a  claim  duly  filed,  and  the  matter  followed  up  until 
settled.  Then  the  balance  not  collected  should  be  written  off 
and  all  papers  filed. 

Sight  Drafts  to  be  Handled  at  Once 

Bills  marked  "Sight  Draft  Bill  of  Lading"  should  be 
handled  immediately.  Clerks  must  obtain  the  comptroller's 
approval  and  forward  them  to  the  company  treasurer,  who 
draws  the  proper  draft  and  collects  the  money.  If  the  treas- 
urer does  not  promptly  report  the  collecting  of  the  bill,  the 
clerk  should  notify  the  comptroller  and  look  into  the  reason 
for  non-payment  of  the  draft. 

Sundry  Sales — Procedure  of  Outside  Offices 

One  other  matter  which  may  be  treated  in  this  connection 
is  that  of  sundry  sales,  or  miscellaneous  cash  turned  over  by 
the  division  managers.  This  is  money  which  has  been  col- 
lected (1)  from  employees  for  the  sale  or  loss  of  company 
material,  such  as  caps,  badges,  punches ;  for  damages  to  cars, 
and  minor  losses  of  old  material  not  included  in  the  scrap 
account;  and  for  personal  telephone  calls;  (2)  from  passen- 
gers for  damages  done  by  them  to  the  cars,  etc. 

When  the  division  manager  receives  cash  from  any  such 
source,  he  should  immediately  write  a  letter  to  the  comptroller 
explaining  the  circumstances,  and  at  the  same  time  turn  the 
money  over  to  the  cashier  of  his  division  together  with  a  copy 


300  "INSIDE"   ACCOUNTING   WORK 

of  his  letter  to  the  comptroller.  The  cashier  will  make  a 
special  deposit  of  the  money,  crediting  the  proper  account,  and 
will  place  upon  his  bank  advice  information  that  will  tell  the 
comptroller  what  this  money  pays  for.  If  there  should  be 
several  items  on  any  one  occasion,  the  cashier  may  use  the 
reverse  side  of  the  bank  advice  to  enumerate  them. 

The  duty  of  the  company  treasurer  in  this  connection  is 
as  follows:  When  the  amounts  are  to  be  credited  to  operating 
expense  accounts,  not  exceeding  $5  for  each  item,  he  should 
enumerate  briefly  the  particulars  of  each  amount  and  enter  it 
separately  in  his  cash  book  in  a  special  column  headed  "Sun- 
dry Sales." 

Checking  of  Sundry  Sales 

The  comptroller's  office  must  make  sure  that  for  every 
amount  credited  in  the  "Sundry  Sales"  column  of  the  cash 
book  it  has  a  report  from  the  division  manager.  If  no  report 
has  been  received,  necessary  steps  must  be  taken  to  obtain  it. 
Each  item  in  the  cash  book  should  be  checked  with  a  small 
mark,  indicating  that  the  advice  from  the  manager  has  been 
received. 

At  the  end  of  the  month  all  of  these  reports  from  the  divi- 
sion managers  are  listed  in  chronological  order  according  to 
the  dates  when  they  were  received  or  when  the  money  was 
received.  This  list  shows  the  name  of  the  division,  the 
amount,  and  the  account  which  should  be  credited.  This  list 
when  duly  totalled  should  agree  with  the  amount  credited  in 
the  cash  book  to  Sundry  Sales. 

A  journal  entry  will  be  made  each  month  for  the  amount 
of  this  statement,  charging  Sundry  Sales  and  crediting  the 
proper  operating  expense  accounts.  To  the  journal  entries 
should  be  attached  the  reports  of  the  manager  and  the  list 
referred  to  in  the  preceding  paragraph.  Care  should  be  taken 
to  see  that  the  Sundry  Sales  account  is  in  balance  at  the  end 


ACCOUNTS    RECEIVABLE   AND   COLLECTIONS         301 

of  the  month.  With  this  method  in  force  it  will  be  unneces- 
sary for  the  division  manager  or  cashier  to  send  personal 
checks  to  the  main  office.  No  company  money  should  be 
mixed  in  any  way  with  personal  funds. 

Corrected  Bills 

Whenever  a  bill  which  has  been  rendered  against  some 
other  person  or  firm  is  sent  back  to  the  company  as  incorrect, 
attention  should  be  called  definitely  to  the  incorrectness  in  the 
accounts.  This  matter  is  very  important.  When  a  bill  is  once 
sent  out  of  the  office  and  then  for  some  reason  or  other  is 
withdrawn,  either  at  the  request  of  the  other  firm  or  because 
the  company  finds  it  to  be  incorrect,  a  letter  must  be  written 
to  the  firm  which  objected  to  the  bill  or  to  which  the  bill  was 

incorrectly  rendered,  telling  them  that  bill  No covering 

a  piece  of  work  for  a  certain  amount  has  been  withdrawn  and 
that  in  its  place  corrected  bill  No has  been  issued. 


CHAPTER    XX 

INVOICES  AND  VOUCHER   ACCOUNTS   PAYABLE 

Approving  Bills  for  Payment 

The  work  of  the  accounting  department  in  connection  with 
the  payment  of  bills  against  the  company  is  most  important. 
It  is  not  complex  or  peculiar  in  procedure,  however,  and  does 
not  therefore  require  extended  discussion. 

The  accounting  department  must  first  make  sure  that  all 
bills  presented  for  payment  have  been  duly  authorized  and  are 
correct.  Most  bills  pass  through  the  purchasing  department, 
as  explained  on  page  200.  The  stores  keeper  checks  the 
invoice  for  receipt  of  material,  the  purchasing  agent  for  cor- 
rectness of  prices,  and  the  comptroller's  office  must  then  check 
it  for  arithmetical  correctness  and  the  proper  account 
chargeable. 

The  bills  which  for  some  reason  do  not  go  through  the 
purchasing  agent's  office  must  be  approved  by  some  official 
authorized  to  incur  expenses,  such  as  the  division  manager, 
engineer,  traffic  agent,  or  other  officer.  In  general  these 
approvals  should  be  somewhat  as  follows: 

On  invoice  charged  to  General  Stores Stores  Keeper 

'  Operating  Expense. .  Division  Manager 

Construction  Work .  Engineer  in  Charge 
"  Parks  or  Traffic ....  Traffic  Manager 

Taxes Tax  Commissioner 

Damages Legal  Department 

When  the  money  is  paid  out,  the  accounting  department 

302 


INVOICES    AND    ACCOUNTS    PAYABLE  303 

must  see  that  a  correct  and  adequate  record  of  the  transaction 
is  made.  This  is  generally  done  nowadays  by  the  means  of  a 
system  of  voucher  blanks.  When  an  invoice  has  been  checked 
as  to  prices  and  quantities  and  as  to  mathematical  correctness, 
and  has  been  approved  as  a  whole  by  the  head  of  the  depart- 
ment concerned,  a  voucher  check  is  filled  out  in  the  comptrol- 
ler's office;  and  after  the  proper  approvals  by  the  authorized 
officers  of  the  company  have  been  placed  on  the  voucher  blank, 
it  is  forwarded  by  the  comptroller  to  the  treasurer,  who  makes 
the  proper  entries  in  the  cash  books  and  in  check  records  and 
signs  the  check.  He  also  obtains  the  countersignature  of  the 
officer  authorized  to  countersign  checks,  and  then  mails  the 
check  to  the  payee. 

Voucher  Checks 

Voucher  blanks  vary  with  each  company ;  local  conditions 
have  something  to  do  with  this ;  and  each  company  very  likely 
regards  the  form  which  it  is  using  as  the  best  that  can  be 
devised.  It  would  seem,  however,  that  time  and  money  could 
be  saved,  if  uniform  voucher  blanks  were  used  by  the  differ- 
ent companies  throughout  the  country,  merely  changing  the 
headings  to  suit  the  needs  of  the  various  requirements.  In 
the  writer's  experience  the  best  arrangement  yet  devised  is  a 
voucher  check,  such  as  Form  124.  The  voucher  is  prepared 
in  the  auditing  department  upon  a  typewriter  and  at  the  same 
time  the  check  is  written  in  favor  of  the  payee.  One  of  the 
advantages  of  this  form  as  demonstrated  in  actual  use  is  that 
the  distribution  is  shown  on  the  face  of  the  voucher,  enabling 
the  items  to  expenses,  etc.,  to  be  passed  direct  to  the  books 
without  turning  over  papers.  The  check  is  written  when  the 
voucher  is  prepared  and  thus  saves  the  treasury  department  a 
great  deal  of  work. 

The  president's  approval  appears  on  the  check  as  a  counter- 
signature, which  has  the  advantage  of  both  approving  the  pay- 


304 


"INSIDE"   ACCOUNTING  WORK 


CHECK  NO.  20002 
TO 

THE  WE55EX  COMPANY 

AUDIT  NO. 

MONTH  OF 

ADDRESS 

TRFA3  NO. 

MONTH  OF 

^ 

. .                       ...    , — 

Form  124.     Voucher  Check   (face).     Size,  8l/2   X    11. 


THE 

Vouche 
Month 

M 

c/> 

(Reverse  side  of  above  form  | 

X 

8 

2 

3 

Form  124.    Voucher  Check  (reverse). 


INVOICES   AND   ACCOUNTS   PAYABLE  305 

ment  and  countersigning  the  check.  The  approval  of  the 
comptroller  appears  on  the  voucher  and  then,  if  necessary, 
appears  on  the  check  as  a  countersignature  instead  of  the 
signature  of  the  president.  The  treasurer's  office  merely  has 
to  date  the  check,  stamp  in  the  name  of  the  bank  where  it  is 
payable,  and  fill  in  the  signature. 

If  the  invoices  have  been  checked  by  the  proper  depart- 
ment official  for  prices  and  quantities,  by  the  comptroller's 
office  for  mathematical  correctness,  and  approved  as  a  whole 
by  the  head  of  the  department  concerned,  the  voucher  need 
bear  only  the  approval  of  the  head  of  the  accounting  depart- 
ment and  the  president  of  the  company. 

If  it  is  necessary  to  pay  any  voucher  without  the  custom- 
ary approval,  that  voucher  should  be  presented  to  the  official 
as  soon  afterward  as  possible  and  his  signature  obtained  even 
though  the  money  has  been  paid. 

On  the  voucher  checks,  which  are  made  up  usually  on  a 
typewriter  and  initialled  by  the  head  voucher  clerk,  only  names 
should  be  inserted,  never  titles  such  as  "Mr.,"  "Mrs.,"  etc. 
As  soon  as  the  forms  are  signed  by  the  comptroller,  all  the 
vouchers  should  be  entered  in  the  proper  voucher  book  and 
passed  along  to  the  expense  ledger  clerk  and  then  to  their 
proper  destination  for  the  approval  of  higher  officers.  After 
the  vouchers  have  been  returned  from  the  other  departments 
with  approvals,  they  are  passed  to  the  treasurer  for  payment. 

The  treasurer  completes  the  checks  by  dating  them  and 
stamping  in  the  name  of  the  bank  where  payable,  and  records 
the  same  in  the  cash  book;  he  then  forwards  them  to  the 
payee.  The  voucher,  or  upper  half  of  the  form,  with  papers 
attached,  is  returned  to  the  comptroller's  office  to  be  filed. 

Frequency  of  Vouchering 

Miscellaneous  bills  should  be  vouchered  promptly.  The 
purchasing   agent's   bills   may   be   vouchered   once   a   month 


306 


"INSIDE"   ACCOUNTING   WORK 


except  rush  or  discount  vouchers,  for  which  promptness  is  re- 
quired. The  practice  varies  a  great  deal  with  different  com- 
panies. Some  prefer  to  voucher  and  pay  their  bills  every  day ; 
others  pay  weekly  or  monthly.  Where  the  company  is  pur- 
chasing some  items  from  the  same  firm  nearly  every  day,  a 
voucher  prepared  once  a  month  and  a  payment  made  once  a 
month  are  considered  sufficient.  The  merchant  who  sold  the 
goods  receives  his  money  within  thirty  to  forty-five  days  after 
the  sale  of  the  goods  and  much  work  has  been  saved  both  in 
the  treasurer's  office  and  in  the  accounting  department. 

Voucher  Register 

The  book  for  registering  vouchers  should  be  specially  de- 
signed. A  very  convenient  device  for  avoiding  errors  in  foot- 
ings carried  forward  is  shown  on  Form  125. 

The  first,  third,  and  other  odd-number  leaves  of  the  book 
are  cut  away  at  the  bottom  through  the  "total"  line  (as  shown 
in  the  first  two  columns  in  the  illustration)  ;  the  second,  fourth, 
and  other  even-number  leaves  are  cut  away  similarly  through 
the  "total"  line  at  the  top  (as  shown  on  the  "sub-page"  of  the 
illustration). 

When  the  entries  for  the  first  left-hand  page  have  been 
registered,  the  columns  are  added  up,  and  the  totals  placed  at 
the  head  of  the  page.  When  the  second  leaf  (which  is  cut 
away  at  the  top)  is  turned,  these  first  totals  appear  over  the 
second  left-hand  page,  which  is  then  added  down.  Since  the 
third  left-hand  page  is  cut  away  at  the  bottom,  when  it  is 
turned  the  second  set  of  left-hand  totals  appears  below  this 
third  left-hand  page,  which  is  then  added  up. 

Since  the  second  leaf  is  cut  away  at  the  top,  the  printed 
headings  showing  above  the  columns  on  the  first  right-hand 
page  are  those  of  the  second  right-hand  page  (the  first  page 
of  the  third  leaf),  itself  cut  away  at  the  bottom.  When  the 
entries  on  the  first  right-hand  page  are  added  up,  the  totals 


INVOICES   AND   ACCOUNTS    PAYABLE 


307 


3 

J 

3 
i 

J: 

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COMPANY 

^p 

T 

i 

^            f 

5 
1 

C* 

s 
< 
d 

0  j 

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5H 

G  - 

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11 

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$ 

1-  in  _i      i-H 
IP   ~&" 

egg  -<£- 

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ID  DC 

58 

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if) 

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0 

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Qo 

(1  iJ 

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0 

X 


m 


bo 
4  2 


308 


"INSIDE"   ACCOUNTING   WORK 


arc  entered  at  the  head  of  this  second  right-hand  page.  That 
page  is  then  added  down,  and  the  totals  resulting  are  placed  at 
the  bottom  of  the  third  right-hand  page. 

Under  this  plan  the  column  totals  need  not  be  copied. 
At  the  end  of  the  month  all  that  it  is  necessary  to  do  is  to 
f(  m  it  the  last  page  and  draw  off  the  figures  on  the  journal  entry 

form,    as    follows:      "For  vouchers    registered    in    , 

19 ,  as  per  voucher  register  No ,  page 

to "     (Then  give  names  of  accounts  to  be  charged.) 

If  possible  all  payments  of  vouchers  as  shown  in  the  cash 
book  should  be  posted  into  the  voucher  register  daily.  As  soon 
as  convenient  after  thus  closing  the  voucher  book,  a  list  of  all 
vouchers  unpaid  at  the  end  of  the  month  should  be  drawn  off 
on  Form  126.  This  list  should  be  given  to  the  head  book- 
keeper to  be  checked  with  the  balance  in  the  general  ledger. 


THE  WESSEX  COMPANY 
LIST  OF  OUTSTANDING  VOUCHERS  PAYABLE 

Date  of 
Voucher 

Month 
Registered 

Voucher 
Number 

NAME 

AMOUNT 

Date 
Paid 

' —^ 

— 

1 

TOTAL  FORWARD 

Form    126.      List    of 


Outstanding    Vouchers 
8lA  X  14. 


Payable.     Size, 


For  a  voucher  register  index  an  ordinary  narrow  stock 
ledger  will  be  convenient.  All  vouchers  should  be  carefully 
posted  to  the  index  book  soon  after  they  are  registered,  as  this 
index  is  nothing  more  or  less  than  a  list  of  all  registered  vouch- 
ers arranged  alphabetically.  Both  debit  and  credit  sides  of  the 
ledger  may  be  used.  As  all  payments  are  posted  from  the  cash 
book  into  the  voucher  register  and  the  list  of  unpaid  vouchers 


INVOICES   AND   ACCOUNTS   PAYABLE  309 

is  drawn  off  each  month,  it  seems  unnecessary  to  post  pay- 
ments into  the  index  book. 

Two  items  of  a  miscellaneous  nature  connected  with  the 
voucher  work  of  a  large  corporation  should  be  mentioned  here. 

Checking  Shippers'  Statements 

These  statements  should  be  checked  up  each  month. 
Wherever  invoices  are  found  to  be  getting  old  they  should  be 
investigated  and  correspondence  started  with  the  creditors  of 
the  company  to  get  all  old  invoices  in  as  soon  as  possible,  so 
that  the  company's  books  will  show  all  liabilities. 

Redeeming  Cancelled  Ticket  Books 

It  sometimes  is  necessary  to  draw  vouchers  to  redeem  can- 
celled tickets.  Local  cashiers  should  redeem  the  tickets  as 
explained  in  Chapter  IV,  charging  the  person  wishing  his  tick- 
ets redeemed  with  full  fare  for  the  number  of  tickets  used,  and 
refunding  the  difference  between  this  amount  and  the  selling 
price  of  the  books.  The  cashier  should  take  a  receipt  on  the 
regular  form  and  send  it  in  with  his  working  fund  voucher, 
together  with  tickets  or  ticket  book,  as  the  case  may  be.  The 
voucher  clerk  checks  up  the  amount  refunded,  detaches  the 
ticket  or  ticket  book,  and  delivers  it  to  the  chief  clerk  with  a 
notation  like  the  following: 

Company 

Tickets  Refunded  on Division  by 

Local  Cashier 

Tickets  ;  Selling  Price  $ 

Tickets  used  at  5c  $ 

Refund  of  $ 

Correct  

Voucher  Clerk 

The  receipt  from  the  party  will  be  sufficient  for  the  voucher 
clerk  to  pass  the  working  fund  voucher  on  to  the  comptroller. 


CHAPTER    XXI 

STATEMENTS* 

Utility  of  Statements 

The  work  of  examining  and  analyzing  the  company's 
activities  is  taken  up  promptly  each  month  by  means  of  the 
statements  prepared  by  the  accounting  department  from  the 
company's  accounts  and  records.  The  statements  formerly 
issued  consisted  merely  of  such  summaries  of  income  and 
expenditure  as  could  be  shown  on  a  balance  sheet,  general  or 
detailed,  for  a  certain  period.  In  later  years  their  number  and 
variety  has  been  greatly  increased  so  that  they  closely  approach 
the  analytical  studies  of  the  statistician's  office.  The  line  of 
differentiation  between  the  statistician's  reports  and  the  state- 
ments is  this:  The  former,  as  is  explained  in  Chapter  XXIII, 
are  prepared  from  the  point  of  view  of  the  scientist  interested 
in  the  logical  relation  of  certain  facts;  the  latter,  as  discussed 
in  the  present  chapter,  are  prepared  from  the  point  of  view  of 
the  business  man  interested  in  gain  or  loss. 

Daily  Statements 

Owing  to  the  nature  of  the  street  railway  business  there 
are  only  one  or  two  of  these  which  are  of  any  particular  use 
to  the  officers  of  the  company.  With  nearly  all  companies  the 
accounting  department  is  called  upon  to  get  out  a  daily  state- 
ment showing  approximately  the  earnings  of  each  one  of  the 


*Portions  of  the  material  of  some  of  the  large  forms  of  this  chapter  have  been 
omitted  in  order  to  emphasize  the  arrangement.  The  omitted  material  is  given  in 
the  accompanying  text.  It  consists  chiefly  of  headings  prescribed  by  the  Interstate 
(  ommerce  Commission,  which  may  be  found,  in  the  same  phraseology  and  order,  in 
the    Commission's   "Uniform    System    of    Accounts." 

310 


STATEMENTS 


311 


company's  divisions  and  sometimes  of  particular  lines  or 
routes.  This  is  about  the  only  daily  statement  of  much  inter- 
est that  can  be  made  up.  For  this  Form  127,  "Daily  Report 
of  Approximate  Passenger  Earnings,"  is  used.      This  state- 


THE  WESSEX  COMPANY 

DAILY  REPORT  Or  APPROXIMATE  PASSENGER  EARNINGS 

Month  nf                      to  date 

B 

lnc.-Black 
Dec-Red 

Inc-Black 
Dec -Red 

19 

19 

19 

Hamilton 

Oundas 

Ancaster 

Greensville 

Grimsby 

Freelton 

Watertown 

1 -^ 

J 

Total  Wessex  Co. 

Hamilton  S  Dundas  Ry  Co. 

Ancaster  5t  R.R.Co 

Grand  Total 

Date                                          191 

•Comptroller 

Form  127.     Daily  Report  of  Passenger  Earnings,  compiled  by- 
Divisions.     Size,  8^2  X  9. 

ment  shows,  first,  the  divisions  of  the  company,  then  the  earn- 
ings for  the  day  and  for  the  corresponding  day  of  the  previous 
year.  It  is  made  up  promptly  on  receipt  of  the  necessary 
information  each  day. 

Another  statement  sometimes  prepared  may  be  termed  a 
daily  receipts  and  disbursements  statement.  Some  of  the  offi- 
cials of  the  road  may  wish  to  know  just  how  much  money 
has  been  taken  in  or  paid  out  during  each  day  of  the  year. 
This  information,  of  course,  is  readily  obtained  from  the  treas- 
urer's office  or  direct  from  the  cash  books  of  the  company,  but 
it  is  convenient  to  have  it  in  ready  form.    Form  128  is  used. 


3I2  "INSIDE"   ACCOUNTING  WORK 


THE  WESSEX  COMPANY 

Cash  Receipts   &   Disbursements 191. 


Cash    Balance    191. 

RECEIPTS 

From  Agents  and  Conductors  $ 

"        Individuals  &  Companies  

"        Dividends  &  Interest.  


DISBURSEMENTS 

1.  Pay-rolls 

2.  Operating   Expenses 

3.  Improvement  Authorizations 

4.  Fuel 

5.  Other  Material  &  Supplies 

6.  Taxes 

7.  Freight  Bills 

8.  Casualty   and   Insurance    Reserve 

9.  Trustees  Insurance  Fund 

10.  Charges   Recollectible 

11.  Interest  and  Rentals 

12.  Miscellaneous 


Cash  Balance 191 $ 

Amount  of  unpaid   vouchers   in   Treasurer's    Office. 


Form  128.    Daily  Receipts  and  Disbursements.     Size,  8^  X  14. 

When  the  information  is  taken  off  the  cash  book  the  items 
are  placed  under  their  respective  headings  and  all  miscellane- 
ous items  of  expense  are  put  in  under  item  No.  12, 
"Miscellaneous." 

Of  course,  the  particular  headings  for  receipts  and  dis- 
bursements here  given  follow  the  convenience  of  one  particu- 
lar company.    With  another  company  they  might  be  different. 

Special  daily  statements  are  sometimes  called  for,  it  is  true, 
but  they  are  so.  uncertain  and  irregular  that  they  need  not  be 
dwelt  on  here.  The  nature  of  the  business  is  such  that  daily 
comparisons  are  of  little  use.  After  the  earnings  have  been 
compiled,  or  certain  expenses  have  been  watched  for  several 
days,  statements  regarding  them  are  of  much  more  value. 


STATEMENTS 


313 


Weekly  Statements 

Most  of  the  work  on  statements  and  reports  is  carried  on 
from  day  to  day,  the  actual  results  appearing  once  a  month. 
Weekly  statements  are  rarely  more  than  compilations  of  daily 
statements  already  mentioned,  often  made  on  similar  forms. 

A  weekly  report  of  approximate  passenger  earnings  is  thus 
made  up  on  Form  127,  used  for  the  daily  report,  and  a  weekly 
statement  of  cash  receipts  and  disbursements  on  Form  128. 

Monthly  Statements 

Most  of  the  statements  and  reports  of  a  street  railway  com- 
pany are  prepared  monthly.  Manifestly,  a  monthly  statement 
is  of  much  more  value  than  one  covering  a  shorter  period. 
Useful  comparisons  may  be  made  with  similar  months  of  the 
previous  year,  whereas  comparison  of  a  day  of  one  year  with 
the  same  day  of  another  year  is  inconclusive.  A  certain  day 
this  year  may  be  bright  and  sunny  so  that  the  street  cars  take 
in  a  good  deal  of  money,  while  the  corresponding  day  last  year 
was  rainy,  and  only  a  small  amount  of  money  was  taken  in. 

The  numerous  statements  called  for,  moreover,  by  state  or 
city  authorities  are  usually  monthly  statements.  For  various 
reasons,  it  has  grown  to  be  a  custom  with  street  railways  to 
issue  their  statements  monthly,  and  this  uniformity  of  practice 
is  a  very  good  thing  as  it  makes  comparisons  of  various  roads 
much  easier  than  if  some  companies  were  to  issue  their  state- 
ments monthly  and  others  weekly  or  daily. 

Monthly  Income  Report 

As  soon  as  the  books  are  closed  for  the  month  and  a  trial 
balance  obtained,  the  head  bookkeeper  prepares  a  monthly 
income  report,  as  on  Form  129.  At  the  left  and  right  are 
figures  for  the  current  month  and  for  the  year  to  date,  with 
those  for  the  previous  year.    Under  "Non-Operating  Income," 


3H 


"INSIDE"  ACCOUNTING  WORK 


THE  WESSEX  COMPANY 
iMrnMF  ArrmiNT 

For  the  Month 

IncBlack 
Dec  Red 

for... Mos.  ended 

Inc- Black 
Dec- Red 

191 

191 

191 

191 

Total  Operating  Revenue 

Total  Operating  Expenses 

NET  OPERATING  REVENUE 

0 

Net  Revenue  from  Outside  Operations 

TOTAL  NET  REV:  FROM  OUTSIDE  OPER. 

TOTAL  NET  REVENUE 

.... 

— 

Taxes 

1 

J l_ 

OPERATING  INCOME 

NON-OPERATING  INCOME 

Income  from  Lease  of  Road 

Miscellaneous  Rent  Income 

1 

R 

TOTAL  NON-OPERATING  INCOME 

TOTAL  INCOME 

DEDUCTIONS  FROM  GROSS  INCOME 

Rent  for  Leased  Roads 

Miscellaneous  Rents 

1 

■ 

TOTAL  DEDUCTIONS  FROM  INCOME 

NET  INCOME 

Dividends 

- 

SURPLUS  NET  INCOME 

- 

DEFICIT 

for  details  of  Operating  Revenue,  Expenses,  and  Statistics  see  ^hepti: 

12. 


in  addition  to  the  accounts  shown  in  the  illustration,  are:  Net 
Income  from  Miscellaneous  Physical  Property;  Dividend  In- 
come; Income  from  Funded  Securities;  Income  from  Un- 
funded Securities  and  Accounts;  Income  from  Sinking  Fund 
and  Other  Reserves;  Release  of  Premiums  on  Funded  Debt; 
Contributions  from  Others;  Miscellaneous  Income.  Under 
"Deductions  from  Gross  Income"  are  also:  Miscellaneous 
Taxes ;  Net  Loss  on  Miscellaneous  Physical  Property ;  Interest 
on  Funded  Debt;  Interest  on  Unfunded  Debt;  Amortization 
of  Discount  on  Funded  Debt;  Income  Transferred  to  Other 
Companies;  Maintenance  of  Organization — Lessor  Company; 
Miscellaneous  Debits. 


STATEMENTS  -^ 

Relation  to  Interstate  Commerce  Commission  Accounts 

This  statement  agrees  almost  exactly  with  the  income 
accounts  prescribed  by  the  Interstate  Commerce  Commission 
in  their  "Uniform  System  of  Accounts,"  pages  51-62.  The 
case  is  the  same  with  respect  to  the  general  balance  sheet,  and 
the  earnings  and  expenses  reports  below   (Forms  130-134). 

A  street  railway  company  which  is  an  interstate  road 
comes  automatically  under  the  jurisdiction  of  the  Interstate 
Commerce  Commission,  and  the  "Uniform  System  of 
Accounts"  must,  of  course,  be  followed  absolutely  in  compli- 
ance with  the  law.  A  street  railway  company  which  is  located 
entirely  within  one  state  and  does  not  connect  with  any  other 
carrier  is  not  obliged  to  follow  the  "Uniform  System  of 
Accounts."  Nevertheless,  the  writer  believes  it  would  be  of 
advantage  to  all  companies  whether  doing  an  interstate  busi- 
ness or  not,  to  follow  the  Commission  system,  because  then  a 
good  comparison  of  all  street  railway  accounts  and  reports 
could  be  obtained.  It  is  to  be  hoped  that  all  street  railway 
companies  will  adopt  this  idea,  as  well  as  all  state  commis- 
sions which  differ  in  their  accounting  requirements. 

The  General  Balance  Sheet 

The  general  balance  sheet  of  the  company  may  now  be 
prepared,  arranged  as  shown  on  Form  130.  The  accounts 
here  correspond  closely  with  those  of  the  Interstate  Commerce 
Commission  "System,"  pages  71-88. 

On  the  "Assets"  side  there  are  also  numbers  405,  406, 
410-413,  and  also  the  general  group  "Unadjusted  Debits," 
numbers  416-422.  There  is  also  a  single  heading,  "Expen- 
ditures on  Leased  Lands,"  not  on  the  Commission's  list,  and 
the  accounts  headed  "Corporate  Deficit"  are  not  given  by  the 
Commission. 

On  the  "Liabilities"  side,  numbers  433-436,  438,  and  the 
group   of   "Unadjusted   Credits,"   numbers   439-446,    of   the 


3i6 


'INSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
GENERAI    BAI  ANOF  SHFFT                                            .  19 

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STATEMENTS 


3>7 


Commission  list  are  given,  and  numbers  424,  426,  428,  and 
439  are  omitted.  The  accounts  under  "Corporate  Surplus" 
differ  from  the  Commission  list. 

The  slight  variations  from  the  Commission  list  of  accounts 
represent  merely  a  point  of  local  opinion.  The  writer  thor- 
oughly approves  the  Commission's  classification  both  for 
profit  and  loss  accounts  and  for  the  general  balance  sheet. 

Monthly  Operating  Earnings  and  Expense  Reports 

When  the  expense  ledgers  are  closed  for  the  month,  the 
figures  for  the  earnings  and  expenses  of  the  company  as  a 
whole  and  by  divisions  may  be  drawn  off  for  proving  on  large 
sheets,  as  illustrated  by  Forms  131  and  132. 


THE  WESSEX  COMPANY/ 

FADMNflS  AND  FXPFKKFS                              1 

r 

1 

1  Passenger  Revenue 

f 

Z  Baggage  Revenue 

3  Parlor.  Sleeping,  Dining,  3nd  Spec.  Car  Rev. 

L 

4  Mail  Revenue 

-J 

1 

— 

TOTAL  REVENUE  fROM  TRANSPORTATION 

E 

10  Station  and  Car  Privileges 

X 

11  Parcel  Room  Receipts 

X 

IZ  Storage 

/ 

I 

TOTAL  MISCELLANEOUS  REVENUE 

=ff 

f 

TOTAL  OPERATING  REVENUE 

TOTAL  OPERATING  EXPENSES 

NET  OPERATING  REVENUE 

EXPRESS  DEPARTMENT 

5  Express  Revenue 

6  Milk  Revenue 

i: 

TOTAL  EXPRESS  DEPT.  REVENUE 

—  ■' 

: 

24B  Express  Stations  and  Platforms 

x 

38B  Vehicles  and  Horses 

) 

i 

r^T ~^- — ^~          

TOTAL  EXPRESS  DEPT.  EXPENSES 

_■" 

NET  REVENUE  EXPRESS  DEPT. 

L 

E 

Form  131.    Earnings  and  Expenses.    Size,  16  X  14. 


3i8 


"INSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY/ 

f 

SHEET  NO. » 

1  Superintendence  of  Ways  &  Struct 

/ 

2  Ballast 

!  1 

3  Ties 

j 

4  Rails 

1 

- 

i 

TOTAL  WAY  AND  STRUCTURES 

n- 

£ 

29  Superintendence  of  Equipment 

i 

I 

30  Passenger  and  Combination  Cars 

31  Freight,  Expressed  Mail  Cars 

-1- 

1 

TOTAL  MTCE.  OF  EQUIPMENT 

1 

c 

45  Superintendence  of  Fbwer 

46  Fbwer  Plant  Hdgs,  Fixtures  &  Grounds 

47      "             Equipment 

48  Substation       ■ 

_, 

•    TOTAL  POWER 

— 

) 

/ 

TOTAL  (Carried  Forward  to  Sheet  No  2) 

= 

- 

= 

Form  132.     Operating  Expenses.     Size,  16  X   18. 


STATEMENTS 


319 


After  the  figures  have  been  proved  with  the  general  ledger 
totals,  they  should  be  transferred  to  sheets  of  portfolio  size, 
as  on  Forms  133,  134,  135,  for  permanent  pen  and  ink  copies. 


THE  WESSEX  COMPANY 
EARNINGS  AND  EXPENSES 

for the  Month 

Inc -Blade 
Dec-Red 

EARN1NQ5 

for.  _.Moj  ended 

Inc  -Black 
Dec -Red 

191 

191 

I9I 

I9I 

1   Passenger  Revenue 

2  Baggage  Revenue 

3  Parlor  and  Special  Car  Revenue 

0 

4  Mail  Revenue 

TOTAL  REVENUE  FROM  TRANSPORTATION 

"I— 

—  - 

10  Station  and  Car  Privileges 

11  fbrcel  Room  Receipts 

12,  Storage 

TOTAL  MISCELLANEOUS  REVENUE 

TOTAL  OPERATING  REVENUE 

TOTAL  OPERATING  EXPENSES 

NET  OPERATING  REVENUE 

Mileage  Operated  (l5<  and  2ndTracksJ_ 

0 

Revenue  Passengers  Carried 

Tree  Tickets  Collected 

TOTAL  REVENUE  CAR  MILEAGE 

Non-revenue  Motor  Car  Mileaqe 

"         »      Trailer  *       •' 

TOTAL  CAR  MILEAGE 

Per  Cent,  of  Operating  Exp.  1b  Earnings 

Dailv  Average  Receipts 

"          "       Expenses 

"                 "                                                                 "                 1 

Form  133.     Earnings  and  Expenses.     Size,  io1/^   X   12. 

Form  133  gives  a  summary  of  the  month's  earnings. 
First  are  given  the  19  Operating  Revenue  accounts  in  the 
Interstate  Commerce  Commission's  "System,"  pages  43-49. 
Following  "4.  Mail  Revenue"  are  the  revenues  from  express, 
milk,  freight,  and  switching.  Following  "12.  Storage"  are 
demurrage,  telephone  and  telegraph  service,  and  rent  of  tracks 
and  facilities,  of  equipment,  of  buildings  and  other  property. 

The  lower  part  of  the  form  shows,  following  "Free  Tickets 


320 


"INSIDE"   ACCOUNTING  WORK 


Collected,"  seven  headings  giving  statistics  regarding  trans- 
fers, K.  W.  H.  supplied,  and  mileage  for  all  classes  of  cars,  and 
following  "Daily  Average  Expenses,"  twelve  headings  ana- 
lyzing car-mile  expense  and  traffic. 


THE  WESSEX  COMPANY                 sheet  2 
npEPATiNr;  fxpfnsf.s 

For  the  Month 

..  .  Inc-Black                                                    for    Mos.  ended Inc-Black 

191            19 

Dec-Red 

I9i            191         Dec- Red 

Brought  Forward  From  Sheet  No.  1 

45  Superintendence  of  Power 

46  Power  Plant  Bldqi  Fix.  &Grounds 

U~ 

47  Fbwer  Plant  Equipment 

48  Substation  Equipment 

OPER/ 

THE  WESSEX  COMPANY                 sheet  i 
\T\HG  FXPFNSF.S 

fc3        For  the  Month. 

Inc-Black 

Br...  Mcsended Inc-Black 

-            191 

191        Dec-Red 

191             191         Dec-Red 

~ 

1  5up'fnce.of  Way  and  Struct 

Z  Ballast 

5Ties 

-m 

4  Rails 

1 

jT  i    i  ii rz^-= ^T1 

1    Jl    1       1    II     1       |    fl- 

^M- 

28  Equali3ation-Way  and  Struct 

'    TOTAL  WAY  AND  STRUCTURES 

c 

29  Supfnce  of  Equipment 

— ; 

30  Passengers  Combination  Cars 

ip-  1     'if  ^-rX~TZCXX- 

—                II        1              pip 

44  Equali3ation- Equipment 

T__J_Jl_j      i  TL-jU^-"- 

TOTAL  MTCE. OF  EQUIPMENT 

BE        E     : 

C-- 

Total  (Carried  Forward  to  Sheet  2 

II      III  L 

-W^On 

i^Y-r^P-ii — " i, L, 

^ TIT) 

4= 

- 

"    y/    r.eu\  or  trama  lacnmKs — " 

98a  Rent  of  Equipment 

Cl 

99  OtherOperations-Dn 

100  Other  Operations -Cr. 

TOTAL  QEN1  AND  MISC. 

EXPRESS  DEPARTMENT  EXPENSES 

GRAND  TOTAL  OPERATING  EXPENSES 

Form  134.     Operating  Expenses.     Size,  10^   X   12. 


STATEMENTS 


321 


Form  134  is  a  very  elaborate  report,  made  out  on  two 
sheets,  shown  as  1  and  2  in  the  illustration.  Its  headings  are 
practically  identical  with  the  T^o  headings  prescribed  by  the 
Interstate  Commerce  Commission  "System,"  pages  9-  \  with 
the  exception  of  the  accounts  numbered  by  the  Commission 
65,  76,  and  yy.  These  refer  to  express  expenses  and  are  given 
instead  on  Form  135. 

On  Sheet  1  there  are  28  headings  dealing  with  "Way  and 
Structures,"  and  16  dealing  with  "Maintenance  of  Equip- 
ment." On  Sheet  2  there  are  18  dealing  with  "Power";  13 
with  "Conducting  Transportation";  4  with  "Traffic";  18  with 
"General  and  Miscellaneous." 


THE  WESSEX  COMPANY 

EXPRESS  DEPARTMENT 
STATEMENT  Of  EARNINGS,  EXPENSES.  ETC 


Note  -  This  Statement  15  intended  to  show  how  much  Net  Revenue  is  received  from  this  Business  as  agamst 
what  might  be  received,  as  a  (fe-centage  of  Gross  Revenue,  if  the  business  were  handled  by  an  outside 
Enpress  Comp3ny  This  includes  the  specific  expenses  of  the  Enpress  Susmess  together  with  an  equit- 
able proportion  of  the  administration  and  general  office  expenses  It  docs  not  include  dry  charge  for 
Mam+erance  of  Track,  bnecjrEau'pmenf,  or  for  Power  or  other  Facilities  furnished 


Form  135.     Express  Earnings  and  Expenses.     Size,  10Y2  X  12. 


322  "INSIDE"  ACCOUNTING  WORK 

Form  135  is  principally  a  detail  made  up  from  the  two 
preceding  reports.  The  figures  for  the  month  and  for  the 
current  year,  compared  with  the  preceding  year's  figures,  are 
shown  at  the  left  and  right.  Under  "Earnings"  are  given,  in 
addition  to  the  headings  shown  in  the  illustration,  those  num- 
bered 12,  13,  and  15  on  the  Interstate  Commerce  Commission's 
Operating  Revenue  list.  Following  "67b,  Miscellaneous  Car 
Service  Expenses"  come  those  numbered  68,  69,  76,  yy,  80,  83, 
84,  85,  89,  94,  96,  97,  98  on  the  Commission's  Operating 
Expenses  list.  Following  "Total  Revenue  per  Car  Mile"  are 
given  also  Total  Operating  Expenses  per  Car  Mile,  and  Net 
Revenue  per  Car  Mile. 

The  elaborate  statements  described  above,  constituting  the 
final  summary  of  the  company's  business,  must  be  prepared, 
of  course,  with  the  utmost  accuracy. 

Most  of  these  statements  are  made  up  by  the  bookkeepers, 
but  they  should  be  passed  through  the  hands  of  the  statement 
clerk,  when  there  is  one,  before  going  to  the  stenographers. 
Before  finally  passing  these  balance  sheets  and  income  state- 
ments, the  statement  clerk  should  make  sure  that  all  notes  or 
memoranda  which  should  be  shown  upon  them  are  duly  made. 

It  may  be  remarked,  however,  that  inasmuch  as  this  mate- 
rial has  been  largely  standardized  by  the  Interstate  Commerce 
Commission,  these  important  statements  present  actually  less 
difficulty  of  treatment — aside  from  the  need  of  accuracy — than 
do  some  of  the  other  reports,  etc.,  mentioned  heretofore. 

Monthly  General  Stores  Receipts  and  Disbursements 

This  report,  which  is  almost  as  inclusive  and  important  as 
those  just  mentioned,  will  be  compiled  from  the  general  stores 
detailed  ledger  on  Form  136. 

This  statement  shows:  the  divisions  of  the  company;  the 
balance  in  money  value  of  materials  on  hand  the  first  of  the 
month;  the  receipts  of  material  during  the  month — this  mate- 


STATEMENTS 


323 


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324  "INSIDE"   ACCOUNTING  WORK 

rial  divided  to  suit  local  requirements,  although  for  a  small 
road  this  division  may  be  omitted;  the  total  on  hand  and 
received ;  the  disbursements  divided ;  the  balance  on  hand  the 
last  of  the  month ;  and  the  corresponding  balance  of  the  previ- 
ous year.  This  statement  is  too  elaborate  for  the  require- 
ments of  a  small  company  and  in  such  cases  should  be  modi- 
fied to  meet  the  conditions. 

Earnings  by  Routes  Statement 

This  is  a  very  useful  income  statement  which  may  be 
drawn  up  on  Form  1 37.  It  is  made  up  from  the  reports  sent 
in  by  the  division  cashiers  as  explained  in  Chapter  III,  and 
forwarded  to  the  comptroller's  office  as  soon  after  the  first  of 
each  month  as  possible.  The  division  reports  should  be  care- 
fully gone  over  and  the  statistical  information  worked  out  and 
checked.  The  car  hours  and  car  mileage  should  agree  with 
the  car  mileage  and  car  hours  reports  sent  in  by  the  division 
cashiers.  The  total  number  of  revenue  passengers  and  of  trans- 
fer passengers  should  agree  with  the  number  reported  by  the 
division  cashiers  on  Form  16  (see  page  39).  The  total 
number  of  revenue  passengers  multiplied  by  five  cents  should 
equal  the  total  receipts  of  regular  and  extra  cars.  When  there 
is  an  increase  or  decrease  in  car  hours,  there  should  be  a  cor- 
responding increase  or  decrease  in  car  mileage  unless  the  run- 
ning time  of  cars  or  length  of  route  has  been  changed — a  con- 
dition which  should  be  explained  by  the  division  cashier. 

All  of  these  reports  from  the  division  cashiers  should  be 
received  and  properly  taken  care  of  before  the  12th  of  each 
month.  If  on  the  morning  of  the  12th  they  are  not  all 
received,  they  should  be  written  for,  and  again  on  the  morn- 
ing of  the  13th.  If  on  the  morning  of  the  14th  they  have  not 
been  received  the  matter  should  be  referred  to  the  chief  clerk. 
As  soon  as  each  statement  is  checked  it  should  be  given  to  the 
chief  clerk  or  stenographers  to  be  typewritten. 


STATEMENTS 


325 


326 


"INSIDE"   ACCOUNTING  WORK 


At  a  convention  of  street  railway  accountants  held  in  San 
Francisco  in  the  fall  of  191 5,  it  was  suggested  that  this  kind 
of  a  statement  be  eliminated  and  a  better  one  substituted,  but 
up  to  the  present  time  none  has  been  presented;  and  while 
improvements  will  doubtless  be  devised  before  long,  this 
approximate  earnings  by  routes  statement  is  still  very  useful 
to  the  operating  officials. 

Earnings  and  Expenses  of  Parks 

This  statement  (Form  138)  will  be  found  useful  if  the 
company  operates  pleasure  parks.  (See  pages  155  and  156.) 
As  will  be  noted,  it  is  similar  in  form  to  the  regular  operating 
expense  statement. 


THE  WESSEX  COMPANY 
PAPK  EAPNING5  ANn  FyPFNSFS 

For  the  Month 

Inc-Black 
Dec-Red 

EARNINGS 

For.    Mos.ended 

Inc-Black 
Dec-Red   | 

191       ||      191 

191 

191 

1  Rent  of  Privileges 

2  Theatre 

3  Merry-qo- round 

A  Boats 

5  Miscellaneous 

TOTAL  EARNINGS 

'OPERATING  EXPENSES 

B    Maintenance  of  Buildings 

C    Care  of  Grounds 

D    Policing  of  Grounds 

TOTAL  EXPENSES 

NET  EARNINGS 

DEFICIT 

=     - 

' 

Comptroller 

Form  138.     Park  Earnings  and  Expenses.     Size,  loY2   X   12. 

After  D,  Policing  of  Grounds,  are  given  also:    E,  Lighting 
and  Illumination;  F,  Music;  G,  Fireworks;  H,  Special  Attrac- 


STATEMENTS 


327 


tions ;  I,  Boating  Expenses ;  J,  Merry-Go-Round ;  K,  Theatre ; 
L,  Rent  of  Pianos;  M,  Printing  and  Advertising;  N,  Rent  of 
Land  and  Building;  O,  Miscellaneous. 

The  park  expense  statement  should  be  prepared  as  far  as 
possible  in  advance,  the  figures  for  the  previous  year  being 
made  up  from  the  similar  monthly  reports  for  that  year, 
and  those  for  the  current  year  from  the  park  expense  detail 
ledger  kept  by  the  special  expense  ledger  clerk.  These  state- 
ments should  be  completed,  the  increases  and  decreases 
checked  with  the  portfolio,  and  the  statements  given  to  the 
chief  clerk  immediately  after  closing  the  month's  accounts. 

Power  Station  Cost  Statements 

For  these  Form  139  may  be  used.  Like  the  operating 
statements,  this  statement  of  power  station  cost  should  be  pre- 
pared as  far  as  possible  in  advance.  The  current  figures  may 
be  found  in  the  power  station  expense  detail  ledger  kept  by  the 
special  expense  ledger  clerk,  with  one  exception.  The  kilo- 
watt-hours output  of  the  stations  should  be  taken  from  the 
statistical  book,  if  one  is  kept;  if  not,  then  from  the  regular 
K.  W.  H.  reports  on  Form  no  (page  249),  which  should  be 
sent  in  each  month  from  the  engineers  of  the  stations.  The 
power  output  reports  should  all  be  received  in  the  comptrol- 
ler's office  not  later  than  the  9th  of  each  month.  If  they  are 
not  in  by  the  afternoon  of  the  9th,  the  superintendent  or  engi- 
neer concerned  should  be  written  to,  and  again  on  the  after- 
noon of  the  io.th,  and  on  the  morning  of  the  nth  the  matter 
should  be  taken  up  with  the  comptroller  or  the  chief  clerk. 
When  received  the  reports  should  be  O  K'd  by  the  chief  engi- 
neer or  his  assistant.  A  record  should  be  made  in  the  statis- 
tical book  and  whatever  information  is  necessary  transferred 
to  the  monthly  statements.  These  statements  should  be  com- 
pleted and  handed  to  the  chief  clerk  not  later  than  the  26th  of 
each  month. 


328 


"INSIDE"  ACCOUNTING  WORK 


STATEMENTS 


329 


Accident  and  Casualty  Reports 

A  monthly  report  of  accidents  and  casualties  may  be  made 
to  the  president  of  the  company  on  Form  140. 


THE  WES5EX  COMPANY 
MONTHLY  ACCIDENT  REPORT 

DIVISION                  MONTH  OF 

NO.  Of 

NUMBER  OF  PERSONS 

ACCIDEhTS 
PAID  FOR 

Fass. 

Emp. 

Others 

Total 

INJ 

iru 

K 

I 

K 

I 

K 

1 

K 

1 

No. 

Amount 

I.  COLLISIONS  OF  CARS 

(a)  head  on 

(b)  rear  end 

(c)  cnoss 

2  DERAILMENTS 

(a)  st  switch 

(b)  at  curve 

(c)  others 

3.  COLLISION  WITH  VEHICLES. 

(a)  motor  driven 

16  EJECTMENTS 

~ 

17.  DOORS,  GUARD  RAIL,  WINDOWS 

18.  MISCELLANEOUS. 

TOTAL 

Claim  Agent 

Manager 

Form  140.    Monthly  Accident  Report.    Size,  8]/2  X  11. 

After  "Collision  With  Vehicles,"  the  following  items 
appear:  (b)  horse  driven;  (c)  bicycles.  4.  Collision  with 
Person;  (a)  on  public  way;  (b)  on  private  way.  5.  Defective 
Equipment;  (a)  clothing  damaged;  (b)  personal  injury.  6. 
Boarding  cars;  (a)  at  rest;  (b)  in  motion.  7.  Alighting  from 
Cars;  (a)  at  rest;  (b)  in  motion.  8.  Electric  Current;  (a) 
at  station;  (b)  on  line;  (c)  on  car;  (1)  controller  blow-out; 
(2)  others.  9.  Shop.  10.  Power  Station;  (non-electrical). 
11.  Track.  12.  Line;  (non-electrical).  13.  Injured  or 
Thrown  While  in  Cars;  (not  in  collision).  14.  Falling  from 
Cars;  (when  not  purposely  alighting).     15.    Stealing  Rides. 

This  is  a  statement  of  great  interest  to  the  officers  of  a  rail- 
way company.  The  company  must  prevent  accidents  in  every 
way  possible.     These  definite  reports  serve  as  danger  signals 


33° 


"INSIDE"   ACCOUNTING   WORK 


and  lead  to  campaigns  to  prevent  accidents.  The  form  here 
shown  indicates  by  divisions  the  amount  actually  expended  in 
settlement  of  damage  claims  during  the  month,  as  compared 
with  the  amount  reserved  to  take  care  of  such  claims,  and  gives 
the  balance  either  over  or  under  the  estimated  reserve. 

Authorization  Statement 

This  statement  on  Form  141  summarizes  the  amount  of 
work  on  additions  and  betterments  for  the  month.  It  is  pre- 
pared on  the  20th  of  each  month  from  the  authorization 
ledger,  and  should  show  the  amount  authorized  for  additions 
and  betterments  (see  Chapter  XV),  the  amount  expended  to 
date,  the  balance  available  or  the  amount  overexpended,  and 


THE  WESSEX  \ 

Expenditures  Under  Improvement  Authorities  to 191 .  .( 

No.  of 
Authorization 

Date 
Authorized 

Name  of  Authorization 

Amount  of 
Authorization 

I L^_^-^U^^^^^w^ 

r 

1 

/COMPANY 

(Expended 
)  to  Date 

Balance 
Available 

Excess 
Expenditure 

Remarks 

-V— ■ -^->w-V_--*w--V^-^^-S^-V-^^-^-S_ 

J 


Form    141.      Authorization    Statement    (left    and    right    half). 
Size,  i6l/2   X   16. 


STATEMENTS 


331 


the  progress  of  the  work.     These  are  extremely  important 
figures,  used  very  largely  by  a  number  of  the  officers. 


THE  WESSEX  COMPANY/ 

COMPARISON  OF  MAINTENANCE  Of  EQUIPMENT 
EXPENSES  (EXCEPT  POWER  STATION  FOR 

r 

1 

1 

TOTAL 

CARS  AND  LOCOMOTIVES 
Labor 

Material 

_ 

Appropriations 

Current 
Cars  and  locomotives,  Accb  3Z-J5-34    Year 

h 

■      »           »              -    52-33-34  LastYear 

Increase  -Black 
Decrease  -  Red 

1 

ELECEQIPMT.-CARS  &  LOCOMOTIVES 
Labor 

Material 

Appropriations 

...) 

Misc.  Equipment,  Acds.  35-40A    Year 

—  => 

"            •»              ••     35-40A  Last  Year 

Increase  -  Black 
Decrease  -  Red 

SHOP  MACHINERY  AND  EXPENSES 

Labor 

Material 

L— 

Increase-   BlacK 
Decrease-   Red 

Total  Maintenance  of  Equipment  C(4rerar1t 

«             "            "         1         LastYear 

Increase  -  Black 
Decrease  -  Red 

Total  Car  Mileage 

/                   Comptroller 

Form  142.    Comparison  of  Maintenance  of  Equipment  Expenses. 
Size,  16  X  13. 


Maintenance  of  Equipment  Statement 

This  statement,  which  is  also  indispensable,  is  prepared  on 
Form  142.  It  should  be  prepared  as  early  as  possible  in  each 
month.  As  an  additional  precaution,  the  figures  taken  from 
the  expense  ledgers  of  the  company  should  be  checked  with 
the  earnings  and  expense  sheets  (Forms  131  and  132). 

The  accounts  are  grouped  under  four  general  headings: 


332 


"INSIDE"   ACCOUNTING  WORK 


Cars  and  Locomotives;  Electric  Equipment,  Cars  and  Loco- 
motives; Miscellaneous  Equipment;  Shop  Machinery  and 
Expenses.  Under  each  of  these  are  four  sub-heads:  Labor, 
Material,  Appropriations,  Miscellaneous,  and  the  group  totals 
compared  with  those  for  the  previous  year.  The  separation 
of  labor,  material,  authorization,  and  miscellaneous  expenses 
is  a  point  which  is  of  decided  help  to  the  operating  officials. 

Comparison  of  Maintenance  of  Way  and  Structures  Statement 

This  statement  on  Form  143  is  similar  to  the  "Comparison 

of  Maintenance  of  Equipment."     The  accounts  are  grouped 


THE  WESSEX  COMPANY/ 

COMPARISON  OF  MAINTENANCE:  OF  WAY  AND 
STRUCTURES  FOR  MONTH  OF                             Bl| 

r 

TOTAL 

TRACK  AND  ROADWAY 
Labor 

Material 

, 

i 

Appropriations 

—  - 

1 

—  =. 

Current 
Track  and  Roadway,  Accts.  1-19     Year 

Increase -Black 

Decrease-  Red 

ELECTRIC  LINES 
Labor 

Material 

Appropriations 

Electric  Lines.  Accts.  20-24      0YeaPt 

= 

==f\ 

1 

— > 

3£ 

»     -20-24     LastYear 

Increase-  Black 
Decrease-  Red 

BUILDINGS  AND  FIXTURES 

Labor 

I 

Material 

L 

Buildings  and  Fixtures,  Acds.  25-28  feaV 

) 

| 

Increase- Hack 
Decrease- Ped 

Total  Way  and  Structures.           ^I"' 

»       "      «            «                     LastYear 

t 

Increase  -  Wack 
Decrease-  Red 

t 

OATF 

i 

/                  Comptroller 

Form  143.    Comparison  of  Maintenance  of  Way  and  Structures. 
Size,  16  X  ioy2. 


STATEMENTS 


333 


under  three  general  headings:  Track  and  Roadway;  Electric 
Lines;  Buildings  and  Fixtures.  These  are  subdivided  exactly 
as  in  the  case  of  the  maintenance  of  equipment  form  just 
given. 

Cost  of  Oil  Used  Statement 

This  statement  may  be  conveniently  prepared  on  forms 
furnished  by  the  oil  company.  It  is  made  up  from  Form  in 
(see  page  251)  sent  in  by  the  division  managers.  As  soon  as 
the  statements  are  completed,  they  should  be  sent  to  the 
mechanical  engineer's  office  to  be  checked  up,  and  should  then 
be  handed  to  the  chief  clerk,  who  will  see  to  their  proper 
distribution. 

Miscellaneous  Monthly  Statements 

Among  the  many  other  statements  which  might  be  pre- 
pared monthly,  if  the  management  desired,  are: 

A  monthly  telephone  cost  statement 

statement  showing  compensation  payments 

showing  hours  worked  by  conduc- 
tors and  motormen 
of  additions  and  betterments 
showing  cost  of  coal  and  handling 
of  express  and  freight  handled 

It  will  be  observed  that  to  draw  a  clear  line  of  distinction 
between  some  of  these  and  some  of  the  reports  prepared  in 
the  statistician's  office  (Chapter  XXIII)  is  not  always  easy. 

Yearly  Statements  and  Reports 

Under  this  special  division  will  naturally  come  the  annual 
figures  for  each  fiscal  year  and  in  addition  the  annual  reports 
to  various  governmental  commissions.     About  these  there  is 


334  "INSIDE"   ACCOUNTING   WORK 

not  much  to  be  said.  The  Interstate  Commerce  Commission 
requires  a  yearly  statement  from  all  street  railways  under  its 
jurisdiction.  All  the  different  states,  moreover,  most  of  which 
have  public  service  commissions,  require  annual  statements  to 
be  filed  with  the  proper  state  department. 

Public  Service  Commission  Statements 

It  seems  hardly  necessary  to  discuss  here  the  statements 
required  by  commissions.  In  the  first  place,  those  of  the  differ- 
ent states  vary  so  widely  that  any  complete  treatment  would 
be  very  lengthy.  In  the  second  place,  the  requirements  for 
them  are  very  explicitly  set  forth  by  the  commissions  them- 
selves and  are  easily  obtainable. 

It  may  be  said,  however,  that  owing  to  the  great  demand 
upon  the  various  companies  by  the  public  utilities  commis- 
sions, the  tax  commissions,  and  the  Interstate  Commerce  Com- 
mission, it  is  advisable  to  have  a  first-class  clerk  specially 
assigned  to  this  line  of  work. 

Statements  to  Officials  and  Stockholders  of  the  Road 

Aside  from  the  reports  to  commissions,  it  is  a  rapidly 
growing  practice  for  large  street  railway  companies  to  get  out 
an  annual  report  to  their  stockholders  or  directors,  and  this 
annual  statement  is  usually  printed  in  large  quantities  so  that  it 
can  be  delivered  to  the  general  public  if  desired.  Great  care 
should  be  taken  to  see  that  these  annual  statements  are  pre- 
pared properly  and  in  accordance  with  the  rules  prescribed  by 
the  utilities  commissions,  and  especially  to  make  sure  that  they 
agree  with  the  totals  shown  in  the  regular  monthly  statements 
of  the  company.  The  yearly  statements,  in  fact,  while  cover- 
ing a  longer  period,  present  comparatively  little  difficulty  in 
preparation,  except  where  special  information  is  called  for. 
Of  this  special  information,  it  is  true,  a  good  deal  is  usually 


STATEMENTS 


335 


called  for,  so  that  the  work  in  connection  with  the  yearly- 
report  is  after  all  considerable. 

Many  other  yearly  statements  and  reports  may  be  made  up, 
depending,  of  course,  upon  what  the  president  and  other  offi- 
cers of  the  company  may  desire  to  know. 


CHAPTER   XXII 

DETAILS  OF  DEPARTMENTAL  MANAGEMENT 

Filing  Systems 

Owing  to  the  organization  of  the  business  of  a  street  rail- 
way company,  the  amount  of  routine  matter — forms,  reports, 
letters,  etc. — is  unusually  large.  A  great  deal  of  this  routine 
matter  has  to  be  kept  on  file  in  either  general  or  division 
offices.  A  good  filing  system  is  therefore  of  particular 
importance. 

The  files  of  a  street  railway  company  are  different  from 
those  of  a  manufacturing  company.  A  manufacturing  plant 
or  a  wholesale  house  may  perhaps  arrange  its  files  geographi- 
cally to  facilitate  reference  to  a  particular  territory,  or  alpha- 
betically, or  according  to  modifications  of  the  geographical 
method,  by  stations,  etc.  With  most  street  railway  companies, 
however,  it  has  been  found  advantageous  to  file  by  subjects. 
This  method  is  particularly  good  for  street  railways  because 
as  a  usual  thing  the  material  to  be  filed  does  not  run  into  rami- 
fications of  subjects.  For  instance,  the  question  of  tickets,  or 
armatures,  or  rails  is  covered  by  a  file  for  each  subject.  There 
are  cases  where  these  files  are  divided  and  subdivided,  but  in 
most  cases  the  one  subject  file  will  be  sufficient  for  the 
purpose. 

Where  it  is  possible,  a  large  vault  should  be  provided 
so  that  all  files  can  be  kept  where  they  can  be  carefully 
looked  after  and  protected  from  fire  and  danger  of  loss. 
Receipts  should  be  provided  so  that  when  papers  of  any  kind 
are  taken  from  the  vaults,  a  receipt  can  be  signed  for  them. 

336 


DETAILS   OF   DEPARTMENTAL   MANAGEMENT 


337 


The  clerks  in  charge  of  the  files  should  follow  up  all  papers  not 
returned  within  a  reasonable  time  and  keep  the  files  as  com- 
plete as  possible. 

Method  of  Destroying  Old  Records 

As  the  accumulation  of  letters,  reports,  forms,  etc.,  is  con- 
stantly outgrowing  any  possible  storage  facilities,  old  papers 
must  periodically  be  destroyed  to  make  room.  The  following 
procedure  may  be  followed: 

The  comptroller  is  given  authority  to  decide  regarding  the 
destruction  of  any  records.  All  managers,  superintendents, 
cashiers,  stores  keepers,  express  agents,  claim  agents,  etc.,  pre- 
pare lists  from  time  to  time  which  show  the  records  they  wish 
to  destroy  and  designate  the  periods  covered.  These  lists  are 
forwarded  to  the  comptroller  and  if  approved  by  him  are  sub- 
mitted at  the  next  regular  meeting  of  the  board  of  directors 
for  their  approval.  After  the  approval  of  the  board  has  been 
obtained,  a  "Certificate  of  Destruction"  (Form  144)  is  made 
out,  describing  the  records  and  showing  the  periods  which 
they  cover. 


THE  WESSEX  COMPANY 

Certificate  of  Destruction  of  Accounts,  Records, 
or  Memoranda 

Description 

Period  or  Periods  Covered 

I   have  this  day  destroyed  the  above 

in  accordance  with  authority  dated and  certify  that  no 

other    Accounts,    Records,    or    Memoranda    have    been    destroyed 

herewith. 

Witnessed 

1.  Signed 

2. 

3.  Dated 


Form  144.     Certificate  of  Destruction  of  Records.     Size, 

RVo     X     TD. 


338 


"INSIDE"   ACCOUNTING  WORK 


This  certificate  is  forwarded  with  a  letter  of  authority  to 
the  person  who  requested  permission  to  destroy  the  particular 
records.  On  receipt  of  the  letter  of  authority  and  the  certifi- 
cate, the  records  are  immediately  destroyed  and  the  certificate 
signed  and  dated  by  the  official  who  destroys  them  and  by 
three  others  as  witnesses.  The  certificate  is  then  returned  to 
the  comptroller's  office  and  filed  as  a  permanent  record. 

Labor-Saving  Devices 

There  is  so  much  detail  work  in  connection  with  street 
railway  accounting  that  it  is  important  to  use  all  of  the  modern 
labor-saving  devices.  All  modern  offices,  of  course,  are  pro- 
vided with  telephones  and  in  large  ones  an  intercommunicat- 
ing set  should  be  installed ;  this  saves  many  steps  and  adds  to 
the  efficiency  of  the  office. 

The  arrangement  with  regard  to  the  stenographic  work 
depends  entirely  upon  circumstances.  In  a  large  office,  how- 
ever, the  general  statement  stenographers  should  be  in  a  sepa- 
rate room  so  that  their  work  will  not  interfere  with  the  work 
of  the  general  letter-writing  stenographers  or  of  special 
stenographers  to  the  different  officials.  The  work  should  be 
under  a  competent  head  stenographer  who  is  acquainted  with 
all  details  and  can  lay  the  work  out  properly  for  each  one  of 
the  staff. 

No  modern  office  of  any  size  whatever  should  be  without 
a  duplicating  machine  of  some  sort.  Computing  machines  are 
also  necessary.  No  large  office  can  afford  to  be  without  up-to- 
date  computing  machines  adapted  to  the  particular  kind  of 
work.  In  the  mailing  room,  also,  machines  such  as  stamp 
affixers,  envelope  sealers,  addressing  machines,  etc.,  will  be 
found  very  useful. 

In  addition  to  the  various  kinds  of  typewriting  and  com- 
puting machines  already  mentioned,  there  are  some  special 
machines  for  the  handling  of  cash  and  tickets.    Among  these 


DETAILS    OF   DEPARTMENTAL   MANAGEMENT 


339 


is  a  machine  for  sorting  tickets  from  cash,  another  for  sorting 
coins  into  the  different  denominations,  others  for  counting  the 
cash  by  denominations — including  the  dropping  of  the  coins 
into  sacks  ready  to  be  enclosed  in  coin  wrappers  so  that  the 
operator  has  only  to  remove  the  filled  wrapper  and  crimp  the 
open  end.  A  machine  for  counting  tickets,  when  properly 
operated,  will  count  from  25,000  to  30,000  tickets  in  an 
hour. 

Economies 

All  employees  should  realize  the  importance  of  economy  in 
the  office.  In  the  railroad  office  there  are  various  ways  of  pro- 
moting economical  operation. 

Much  of  the  communication  between  different  offices  of  the 
company  may  be  carried  on  company  cars,  saving  both  time 
and  expense. 

An  effort  should  be  made  to  cut  down  the  use  of  the  tele- 
phone for  long  distance  and  toll  line  purposes  when  the  matter 
can  be  handled  satisfactorily  by  correspondence. 

In  all  large  concerns  economy  in  stationery  is  an  important 
matter.  A  considerable  saving  can  be  effected :  ( 1 )  by  cutting 
paper  for  forms,  etc.,  in  the  most  economical  sizes  so  as  to 
minimize  waste;  (2)  by  using  a  cheaper  grade  of  stationery 
for  the  vast  amount  of  correspondence  between  offices.  A  rail- 
road is  better  able  to  economize  in  this  way  than  some  other 
kinds  of  business  concerns  whose  correspondence  is  chiefly 
with  their  customers. 

Fidelity  Insurance 

Some  companies  purchase  this  insurance,  while  others  do 
not  consider  it  necessary.  The  writer  is  strongly  in  favor  of 
it.  No  special  record  is  necessary  other  than  an  alphabetically 
arranged  card  record  giving  the  name  of  the  employee  and 
date  and  amount  of  bond. 


340  "INSIDE"   ACCOUNTING   WORK 

A  most  important  question,  of  course,  is  that  of  the  amount 
for  which  the  employee  should  be  bonded.  A  tentative  set  of 
instructions  based  upon  experience  has  been  prepared  as 
follows: 

i.  Cashiers,  car  receivers,  cash  clerks,  and  messengers 
should  be  bonded  for  75%  of  the  maximum  funds  within  their 
control  at  any  time.  In  cases  of  cashiers,  the  maximum  funds 
represent  the  aggregate  of  the  weekly  pay-roll,  one  day's 
receipts,  and  the  working  fund.  The  assistant  cashier,  who  in 
the  absence  of  the  cashier  performs  all  the  duties  of  the  cash- 
ier, should  be  bonded  in  the  same  amount.  The  maximum 
funds,  so  far  as  cash  receivers,  cash  clerks,  and  messengers 
are  concerned,  represent  funds  actually  handled  by  them,  or 
located  in  safes  to  which  they  have  access.  The  fact  that  at 
times  they  might  have  two  days'  receipts  on  hand  should  be 
considered.  Clerks  working  in  cashiers'  offices  who  do  not 
have  access  to  the  safes  containing  large  sums  of  money, 
should  be  bonded  for  $1,000;  this  has  a  moral  effect  if  nothing 
more.  In  determining  the  maximum  funds,  in  every  case,  the 
busy  season  of  the  year  should  be  taken  into  consideration. 

2.  Claim  agents  should  be  bonded  for  the  amount  of  their 
working  fund  and  $1,000  additional  to  cover  possible  fraudu- 
lent settlements,  or  advances  from  other  claim  agents  and 
cashiers  from  time  to  time,  to  increase  the  working  fund  in 
cases  of  emergency.  The  assistant  to  the  claim  agent,  who 
may  perform  all  the  duties  of  the  claim  agent  in  his  absence, 
should  be  bonded  for  an  amount  equal  to  that  of  the  claim 
agent.  Other  assistants  to  the  claim  agent  should  be  bonded 
for  $500  to  cover  funds  entrusted  to  them  by  the  claim  agent, 
and  possible  fraudulent  settlement  of  claims. 

3.  Timekeepers  should  be  bonded  for  10%  of  the  weekly 
pay-roll  made  up  by  them.  The  minimum  bond  should  be 
$500  in  every  case. 

4.  Stores  keepers  who  handle  large  amounts  of  materials, 


DETAILS   OF  DEPARTMENTAL   MANAGEMENT        34 1 

say  $50,000  worth,  should  be  bonded  for  $1,500  and  their  next 
assistants  for  $500.  Stores  keepers  at  smaller  places  should 
be  bonded  for  $500. 

5.  Express  agents  and  cashiers  should  be  bonded  for 
$2,000  if  the  station  is  fairly  large ;  and  for  $1,000  or  so  if  the 
station  is  small.  Express  messengers,  drivers,  clerks  in  the 
office,  and  those  receiving  clerks  and  billing  clerks  who  handle 
funds  should  be  bonded  for  $500.  Messengers  and  others  who 
may  handle  substantial  funds  of  the  company  for  transporta- 
tion from  one  point  to  another,  as  for  example  those  who 
carry  the  railway  receipts  to  the  cashier's  office,  should  be 
bonded  for  the  maximum  amount  so  handled. 

6.  The  clerk  in  the  comptroller's  office  having  charge  of 
the  ticket  stock  should  be  bonded  for  $2,000  and  his  helpers 
for  $1,500.  These  are  the  only  employees  who  should  have 
access  to  the  stock-room. 

7.  Local  officials  having  the  combinations  of  any  of  the 
safes  which  contain  money  should  be  bonded  for  an  amount 
equal  to  the  maximum  funds  in  the  safes  at  any  time. 

8.  Employees  working  for  more  than  one  company,  in 
case  two  or  more  companies  should  be  represented  in  the  same 
office,  should  be  bonded  separately  by  each  company  served. 

If  there  are  other  employees  to  be  bonded,  the  above  may 
be  a  general  guide. 

Advice  of  any  changes  among  the  bonded  employees  should 
be  sent  promptly  to  the  comptroller's  office. 

Working  Library 

A  most  useful  adjunct  of  a  modern  accounting  office  rec- 
ommended recently  by  the  Educational  Committee  of  the 
American  Electric  Railway  Accountants'  Association  is  a 
small  working  library  of  books  on  accounting  and  related 
topics.  Such  a  working  library  has  been  developed  in  con- 
nection with  the  system  here  described.     The  benefits  have 


342 


'INSIDE"  ACCOUNTING  WORK 


been  found  to  be  twofold.  Much  time  is  saved  in  the  office 
by  having  authoritative  books  conveniently  at  hand  for  de- 
termining points  which  come  up  in  the  course  of  the  daily 
work.  Moreover,  the  library  distinctly  promotes  the  general 
efficiency  of  the  department  employees,  who  are  encouraged 
to  familiarize  themselves  with  the  books  by  means  of  a  loan 
system. 

As  the  activities  of  the  accounting  department  cover  a 
wide  range  of  matters,  it  has  been  found  useful  to  include 
in  addition  to  books  treating  specifically  of  accounting,  other 
works  of  a  practical  nature  dealing  with  various  related  aspects 
of  business. 

Among  the  books  which  have  been  found  useful  in  a 
working  library  are  the  following: 


Accounting  Practice  and  Procedure 
Accounting  Theory  and  Practice 
Accounts,  Their  Construction  and  Interpre- 
tation 
Administration     of     Industrial     Enterprises 
Advertising,  Its  Principles  and  Practice 
Applied  Theory  of  Accounts 
Auditing,  Theory  and  Practice 
Bookkeeping  and  Accountancy 
Business  Finance 
Commercial  Law 

Corporate  Organization  and  Management 
Corporation  Accounting 
Cost  Accounting 

Credit,  Its  Principles  and  Practice 
Effective  Business  Letters 
Electric  Light  Accounts 
Electric  Railway  Auditing  and  Accounting 
Elements  of  Accounting 
Elements  of  Business  Arithmetic 
Factory  Organization  and  Administration 
Getting  the  Most  Out  of  Business 
Graphic  Methods  for  Presenting  Facts 


Dickinson 
Kester 

Cole 

Jones 

Tipper,  Hotchkiss,  etc. 

Esquerre 

Montgomery 

Rowe 

Lough 

Spencer 

Conyngton 

Bennett 

Nicholson 

Blanton 

Gardner 

Edwards 

Force 

Klein 

Bigelow 

Diemer 

Lewis 

Brinton 


DETAILS    OF   DEPARTMENTAL    MANAGEMENT 


343 


Indexing  and  Filing 

Journal  of  Accountancy  (The) 

Modern  Accounting 

Net  Worth  and  the  Balance  Sheet 

Philosophy  of  Accounts  (The) 

Principles  of  Depreciation 

Principles  of  Scientific  Management 

Principles  of  Scientific  Management 

Proper  Distribution  of  Expense  Burden  (The) 

Railroad  Accounting 

Railroad  Finance 

Railway  Transportation 

Science  of  Accounts   (The) 

Style  Book  of  Business  English 

Unified  Accounting  Methods  for  Industrials 


Hudders 

Ronald  Press  Co. 

Hatfield 

Stockwell 

Sprague 

Saliers 

Taylor 

Thompson 

Church 

Hooper 

Cleveland 

Blake    and    Jackson 

Bentley 

Hammond 

Woods 


CHAPTER    XXIII 
THE   STATISTICIAN'S   WORK 

New  and  Important  Work 

The  material  already  considered  in  the  preparation  of  the 
statements  is  further  analyzed  and  studied  when  it  reaches  the 
office  of  the  statistician.  The  systematic  studying  of  costs  and 
of  methods  of  operation  is  a  new  but  most  important  devel- 
opment in  large  street  railway  systems,  as  in  all  modern 
businesses. 

Street  railway  officials  throughout  the  country  have  found 
that  the  cost  of  labor,  material,  and  everything  pertaining  to 
street  railway  transportation  has  increased,  while  the  fares 
have  remained  the  same.  Therefore  it  is  necessary  under 
present  operating  conditions  to  have  minutely  accurate  infor- 
mation, showing  unit  costs  of  power  production,  maintenance 
of  track  and  roadway,  maintenance  of  buildings,  up-keep  of 
rolling  stock,  etc.  This  does  not  mean  merely  the  figures 
which  are  ordinarily  prepared  in  accounting  departments,  but 
further  unit  costs,  which  will  enable  the  officers  of  the  road  to 
know  the  relative  efficiency  of  various  types  of  equipment. 
Moreover,  a  great  many  times  it  is  necessary  to  know  the  cost 
of  operating  one  particular  line  or  even  a  single  car  on  a  line. 
Competition  has  developed  also  in  the  form  of  automobile 
transportation,  and  this  has  added  to  the  necessity  of  compil- 
ing more  minute  statistics. 

In  addition  to  the  statistics  required  by  the  officers  of  the 
company,  the  public  service  commissions  of  the  national  gov- 
ernment and  of  the  various  states  have  in  some  instances 

344 


THE   STATISTICIAN'S   WORK  345 

extended  their  requirements,  and  this  has  put  a  further  burden 
upon  the  accounting  department. 

These  and  other  reasons  have  led  to  the  establishment  of  a 
statistical  office,  usually  and  properly  attached  to  the  account- 
ing department.  In  progressive  companies  the  statistician,  or 
cost  accountant,  as  the  person  in  charge  is  often  called,  is 
usually  at  the  head  of  a  large  and  steadily  increasing  staff. 

The  statistician  is  charged  with  preparing  information  to 
show  the  various  unit  costs  referred  to  above. 

Conservative  Methods  of  Presenting  Statistics 

It  may  be  noted  here  that  in  the  presentation  of  statistics 
there  are  two  distinct  methods,  both  widely  used.  The  first 
method  adheres  to  a  plain  display  of  facts,  classified  under 
proper  headings  in  condensed  form,  with  such  continuity  or 
sequence  in  time  or  incident  as  to  show  clearly  all  results,  the 
source  and  genuineness  of  which  are  not  subject  to  doubt  or 
surmise.  A  second  method  is  frequently  adopted  by  specula- 
tive statisticians,  who  use  as  a  basis  the  accounts  of  a  fiscal 
period  and  by  a  process  of  extreme  analysis  endeavor  to  build 
a  statistical  fabric  with  the  object  of  proving  or  disproving 
certain  theories. 

A  plain  relation  and  classified  presentation  of  principal  facts 
as  portrayed  in  the  first-mentioned  plan,  is  decidedly  prefer- 
able, inasmuch  as  the  plain  truth  thereof  is  sufficient  for  the 
mind  of  any  average  man  to  grasp  and  adequate  for  the  pur- 
poses of  comparison  and  judgment.  The  second  method, 
while  based  upon  a  foundation  of  fact,  is  apt  to  be  so  colored 
and  accentuated  and  so  burdened  with  unnecessary  detail  and 
abstruse  analysis,  as  to  tend  to  mislead  the  open-minded  per- 
son, who  is  seeking  facts  only,  and  to  induce  him  to  accept 
what  may  be  erroneous  or  biased  conclusions.  The  first  method 
should  be  followed  in  the  statistical  office  of  every  street  rail- 
way company, 


346 


"INSIDE"  ACCOUNTING  WORK 


Extension  of  Statistician's  Work 

After  the  statistician's  office  is  established,  many  and 
varied  uses  in  connection  with  the  different  phases  of  the  com- 
pany's activities  soon  suggest  themselves.  Among  the  investi- 
gations which  have  been  recently  made  for  one  office  that  has 
come  under  observation  are  the  following: 

Statements  explaining  high  points  in  operating  expenses 

of  certain  power  stations. 
Statement  of  power  used  on  one  division  in  connection 

with  a  foreign  company  which  operates  over  a  portion 

of  the  lines  of  the'home  company. 
Statement  of  earnings  and  expenses  per  car  mile   for 

various   railway   companies  in   four  adjacent   states 

with  a  view  to  determine  the  average  operating  costs 

per  car  mile. 

To  describe  the  work  of  this  office  in  detail  would  require 
much  more  space  than  is  here  available;  but  an  outline  of  a 
few  of  its  most  important  duties  will  suggest  the  possibilities. 

Shop  and  Costs  Records 

There  is  the  matter  of  shop  records  and  costs,  which  can 
be  carried  into  all  branches  of  shop  work  and  into  various 
kinds  of  costs  and  unit  costs.  One  of  the  most  useful  phases 
of  this  inquiry  is  a  wheel  record,  which  comprises  the  follow- 
ing reports: 

i.  A  report  of  pressing  on  and  off  wheels  is  made  each 
day  by  the  foreman  of  the  wheel  shop  on  Form  145  to  the 
master  mechanic  of  each  division.  The  report  gives  all  the 
data  in  connection  with  the  pressing  of  wheels  on  axles  or 
their  pressing  off  from  axles. 

2.  From  these  daily  reports  a  card  record  is  kept  in  the 
master  mechanic's  office  on  each  division  on  Form  146, 


THE    STATISTICIAN'S    WORK 


347 


THE  WESSEX  COMPANY 
Report  of  Pressing  Off  Wheels 

To   the  Master   Mechanic 

The  following  wheels  were  removed  at Shop 

Axle  No. . . 


. . .  Size Car  No Removed  by 

(Tons         )  (Cause  of) 

Wheel  No Date (Pressure) (Removal) . . 

(Mate            )                                   (Tons         )  (Cause  of) 

(Wheel  No.) Date (Pressure) (Removal)    . 


Man'f s    Kind*    Diameter    

Tape     Size 

Remarks :     

♦Designate  cast  iron  wheels  as  follows:   (F.  C.  S.)  or  (D.  B.  50) 
or  (D.  B.  22-S) 

Date   Removed    

Foreman. 


Form  145.     Report  of  Pressing  Off  Wheels.     Size,  8}4   x  5/^- 


CAR  WHEEL  RECORD 
THF  WFSSFX  COMPANY                                                                niwunM 

WHFFI     NO                                                                   FTTTFn  RV 

MAN'F 

TONS  PDFS^JPF 

KIND 

SI7F  OFAXI  F 

DIAMFTFD                                                                    DATF  APP1  1FD 

PATF  ON  WHFF                                                       NO.  OF  Mffl 

E  WHEEL 

PUT    IN 

REMOVED 

MILES 

CAN  WHEEL 
BE  REAPPLIED 

Car  No. 

Date 

TapeSije 

Date 

Cause 

TapeSije 

In  Service 

Remarks 

Form  146.     Car  Wheel  Record.     Size,  8  X  5^. 


348 


"INSIDE"   ACCOUNTING  WORK 


3.  On  another  set  of  cards  an  axle  record  is  kept  on 

Form  147. 

4.  Another  report  is  made  of  wheels  and  axles  put  under 
or  removed  from  cars  on  Form  148. 

5.  Finally,  a  monthly  report  based  on  all  these  records  is 
made  by  the  master  mechanic  to  the  statistician  in  the  comp- 
troller's office  on  Form  149. 


AXLE  RECORD 
THE  WE55EX  COMPANY 

AVI  F  Nn 

DIVISION 

Purchased  Prom 

Made  by 

Turned  at 

Order  No.                       ReqTi  No. 

Heathy 

Shop 

Specification  No. 

Plan  No. 

Date 

Stock 

DATE 
INSTALLED 

CAR 

NO. 

FITTED  TO  WHEELS 

DATE 

REMOVED 

CAUSE 

SIZE 

NUMBERS 

t?pmarW<; 

-- 

Form  147.     Axle  Record.     Size,  8X5. 


Utility  of  Shop  and  Cost  Records 

When  all  of  the  above-mentioned  reports  and  records  have 
been  written  up,  it  is  evident  that  full  information  is  available 
as  to  records  of  wheels  and  axles.  These  records  are  kept  on 
file  in  the  master  mechanic's  office.  If  they  are  in  good  order, 
the  master  mechanic  is  in  a  position  to  advise  the  general  office 
when  wheels  or  axles  are  put  on  or  taken  off  cars,  incorporat- 
ing the  information  in  a  monthly  report  to  the  statistician's 
office. 


THE   STATISTICIAN'S   WORK 


349 


THE  WESSEX  COMPANY 

Report  of  Wheels  and  Axles  Put  Under  or  Removed  From  Cars 

The   following   wheels  and   axles   have   been 

(Put  under          )                          _         ...      ._.„ 
(Removed  from)                        Cars  this  date. 

Car  No. 

Wheel  No.  Axle  No. 

Wheel  No.           Cause  of  Removal 

^^^^^ 

Date... 

Foreman 

Form  148.    Report  of  Wheels  and  Axles.     Size,  Sl/2  X  5^2. 


THE  WESSEX  COMPANY 

To  Statistician 
Monthly  report  of  Car  Wheels  and  Axles  removed  from 

Date 
Removed 

Car 
No. 

Wheel 

No. 

Wheel 
No. 

Axle 
No. 

Date 

Applied 

Kind 

Cause    of 
Removal 

1 

1 

Master  Mechanic 

Form  149.  Monthly  Report — Wheels  and  Axles.  Size,  Sl/i  X  I2j4. 


350  "INSIDE"  ACCOUNTING  WORK 

When  the  statistician  receives  this  monthly  report  he  refers 
to  the  car  number  and  the  dates  on  which  the  wheels  were 
applied  and  removed,  and  from  the  individual  car  mileage  rec- 
ords described  below  he  can  determine  the  exact  number  of 
miles  made  by  that  car  during  a  given  period  and  thus  the 
exact  number  of  wheel-and-axle  miles. 

When  the  car  mileage  has  been  added  to  the  wheel  report, 
a  summary  is  made  up  for  the  chief  engineer.  This  record  in 
the  chief  engineer's  office  constitutes  a  very  important  factor 
in  buying  car  wheels  and  axles,  as  from  it  one  is  able  to  deter- 
mine whether  steel  or  cast  iron  wheels  are  better  for  a  particu- 
lar division.  This  point  has  always  been  a  matter  of  vigorous 
contention  among  master  mechanics. 

After  the  above  records  are  installed  it  would  be  well  to 
have  a  clerk  from  the  accounting  department  look  in  periodi- 
cally on  the  various  master  mechanics.  If  the  latter  fail  to 
have  the  reports  properly  recorded  on  the  cards,  or  if  they  fail 
to  keep  cards  in  proper  order,  this  record  will,  of  course,  mean 
but  little.  The  importance  of  the  records  should  be  impressed 
on  all  master  mechanics. 

Cost  records  of  a  similar  sort  might  be  installed  for  gears, 
armatures,  etc.,  to  determine  whether  or  not  the  kind  in  use 
is  the  best  for  a  certain  division. 

Car  Mileage 

Practice  varies  a  great  deal  among  the  different  street  rail- 
ways of  the  country  in  regard  to  car  mileage.  Some  roads 
have  on  file  the  amount  of  mileage  that  the  cars  would  make 
throughout  the  day  if  they  were  all  run  on  their  regular  sche- 
dule. They  add  to  this  figure  the  extra  car  mileage,  and 
deduct  the  mileage  of  the  cars  not  run  or  interrupted  for  any 
reason  during  their  trip,  and  thus  arrive  at  a  figure  for  the 
day.  The  same  method  is  followed  for  other  days  in  the 
month,  after  which  the  mileage  for  all  the  days  in  the  month 


THE   STATISTICIAN'S   WORK 


351 


is  added,  thus  arriving  at  the  total  for  the  month.  The  more 
scientific  method  is  to  obtain  the  mileage  for  each  individual 
car,  as  this  will  afford  a  basis  for  valuable  statistics  of  all 
kinds  where  a  mile  unit  per  car  is  required. 

By  means  of  this  individual  car  mileage  the  statistician  is 
enabled  to  make  almost  any  kind  of  study.  Ordinarily  this 
mileage  is  dealt  with  by  mileage  clerks  in  the  general  office,  but 
in  the  system  described  in  this  volume  it  is  handled  by  the 
statistician. 

Method  of  Recording  Car  Mileage 

The  conductors  report  on  their  day  cards,  as  explained  in 
Chapter  III,  the  mileage  for  every  run,  using  mileage  maps 
furnished  by  the  engineering  department.  From  these  day 
cards  the  individual  car  mileage  is  figured  in  the  office  of  the 
division  cashiers,  and  a  daily  report  is  prepared  on  Form  150, 
"Record  of  Individual  Car  Mileage."     This  report,  which  is 


THE  WE5SEX  COM  PAN  y// 
RECORD  OF  INDIVIDUAL  CAR  MILEAGE  / 

.DIVISION                                                  / 1  MONTH  Of                 191 

^"> 

psJ 

- 

_ 



n i 

I 

- 

II  I     II  I    II  I    II  I    II  I    II \  l_U LJ I U L 

Form  150.     Record  of  Individual  Car  Mileage.     Size,  14  X   17 

retained  in  the  division  office,  indicates  the  car  number  and 
mileage  for  all  cars  operated  on  the  division  reported,  includ- 
ing passenger  cars,   express,   freight,   work  cars,   and  snow 


35^ 


"INSIDE"   ACCOUNTING   WORK 


plows.  Form  1 50  is  kept  by  routes,  separate  sheets  being  used 
for  each  route  and  for  the  various  classes  of  mileage  other 
than  the  regular  passenger  cars.  At  the  end  of  the  month  the 
cashier  adds  the  various  sheets  of  the  form  and  then  has  a 
complete  record  of  mileage  by  cars  and  by  routes.  New  sheets 
are  started  each  month,  and  this  record  of  individual  car  mile- 
age is  kept  in  a  loose-leaf  binder  which  has  been  provided  for 
the  cashier  of  each  division. 

From  Form  150  the  cashier  makes  out  each  day  Form  151, 
which  he  sends  at  once  to  the  statistician's  office.  These 
reports  are  there  assigned  to  certain  clerks  who  post  the  mile- 
age upon  cards  provided  for  such  record.  Two  cards  are  pre- 
pared, as  illustrated  in  Form  152,  one  white  for  the  passenger 
equipment  and  one  salmon-colored  for  express,  freight,  and 
work  cars.  Thus  it  is  easy  to  keep  the  cards  in  order  and  to 
keep  the  miscellaneous  equipment  separate  from  the  regular 
passenger  equipment. 

The  mileage  clerks  prepare  statements  each  month  as  they 
are  called  for,  showing  the  miles  run  by  the  various  cars  for 
different  periods.    In  this  way  the  number  of  miles  run  by  car 


THE  WESSEX  COMPANY 

To  the  Comptroller.  Division. 


Daily  report  of  individual  car  mileage   for 191.. 


Car 

No. 


Miles 


Car 

No. 


Miles 


Car 

No. 


Mile: 


Car 

No. 


Miles 


Car 

No. 


Miles 


I           1         1          1 

1            1        !          i        1          1        1         | 

1            1        1          !        >          !        1 

1 

Date 

Cashier 

Form  151.    Daily  Individual  Car  Mileage  Report.    Size,  8x/2  X  11. 


THE   STATISTICIAN'S   WORK 


353 


THE  WESSEX  COMPANY 

Mil  FAf^P  PFrOPD  FOP  TAP  NO 

JAN. 

FEB 

MAC. 

APR 

MAY 

JUNE 

JULY 

AUG. 

SEPT 

OCT. 

NOV 

DEC. 

1 

1 

3 

30 

31 

Form  152.    Mileage  Record  for  Car.    Size,  9^2  X  nj^. 

wheels  and  axles  placed  on  the  various  types  of  equipment  and 
similar  mileage  statements  may  be  prepared  as  needed.  This 
individual  car  mileage  is  the  basis  of  practically  all  shop 
costs. 


Car  Hours 

Reports  of  car  hours  are  of  considerable  importance  for 
supplementing  car  mileage  reports.  Where  statistics  for  this 
matter  are  required,  the  figures  can  usually  be  taken  from  the 
schedules  of  running  time  regularly  prepared  by  the  operating 
department. 

The  hours  run  on  each  line  each  day  may  be  obtained  from 
the  regular  schedules  made  up  in  the  offices  of  the  division 
managers,  which  are  modified  of  course  from  day  to  day.  The 
hours  for  extra  or  "tripper"  cars,  as  they  are  sometimes  called, 
may  be  obtained  from  the  extra  schedule  similarly  prepared. 
The  figures  may  be  gathered  from  three  reports  which  are 
turned  in  daily:  Report  of  Extra  Cars  Run  (Form  70)  ;  Mis- 
cellaneous Time  Allowed  (Form  71)  ;  and  Changes  of  Run- 
ning Time  on  Regular  Runs  (Form  153).  Forms  70  and  71 
have  been  already  shown  (pages  164  and  165). 


354 


"INSIDE"   ACCOUNTING   WORK 


THE   WE55EX  COMPANY 

Report  of  Changes  in  Running  Time  of  Regular  Runs 

Run 

No. 

CONDUCTOR 

MOTORMAN 

Car  Due 
at  Barn 

Car  Arrived 
at  Bam 

Extra 
Time 

REASON 

..... 

r- 

. 

Total  Extra  Time- 

Date  __ 

5upt. . 

Starter 

Form  153.    Report  of  Changes  in  Running  Time.    Size,  8J/2  X  14. 

These  reports  are  all  prepared  by  the  foremen  at  the  dif- 
ferent car  houses.  The  extra  car  hours  are  figured  on  sepa- 
rate sheets,  and  when  finished  are  posted  in  the  regular  car 
hour  book  and  the  figures  added  to  those  taken  from  the  regu- 
lar schedules.  The  hours  for  express  cars,  chartered  cars, 
revenue  freight  cars  and  cars  carrying  company  business, 
shifting  cars,  and  work  cars  will  be  reported  on  the  day  cards 
which  every  conductor  in  charge  of  a  car  turns  in  regularly, 
and  when  compiled  they  are  also  posted  into  the  regular  car 
hour  book.  At  the  end  of  the  month  this  book  is  totalled  and 
the  totals  are  shown  on  the  earnings  by  routes  statements  and 
also  on  the  regular  car  mileage  reports. 


Inspection  Reports 

The  car  mileage  records  just  described  make  it  possible 
also  to  keep  accurate  records  of  car  inspections.  A  separate 
card  is  provided  for  each  car  assigned  to  the  various  divisions, 
and  the  mileage  is  regularly  posted  thereon  so  that  a  running 
total  is  kept.  When  a  car  has  covered  a  certain  number  of 
miles,  it  is  reported  for  inspection  by  the  clerks  in  the  statisti- 
cian's office  who  have  this  matter  in  charge.    The  frequency  of 


THE    STATISTICIAN'S    WORK 


355 


inspection  will  vary,  of  course,  according  to  the  type  of  equip- 
ment on  the  car;  for  some  perhaps  800  miles,  for  others  1,000, 
and  others  1,500  miles. 

Where  the  car  mileage  is  watched,  as  indicated  above,  it  is 
possible  to  estimate  the  proper  inspection  time  very  accurately. 
For  instance,  a  car  on  a  1,500  car-mile  basis  appears  to  have 
run  1,150  car-miles,  according  to  the  mileage  card,  and  has 
three  days  to  run  before  inspection,  and  it  appears  from  the 
cards  that  this  car  averages  130  miles  per  day.  It  is  accord- 
ingly decided  to  report  this  car  at  the  regular  time  for  inspec- 
tion, for  if  it  maintains  the  average  of  130  miles  a  day  it  will 
exceed  the  1,500  miles  allotted  to  that  type  of  equipment,  and 
even  if  it  falls  short  it  will  presumably  run  over  1,400  miles. 

This  method  has  been  found  to  work  out  extremely  well, 
especially  where  cars  are  run  on  the  same  route  from  day  to 
day.  In  the  spring  and  fall,  when  both  open  and  closed  cars 
are  being  operated,  according  to  the  weather,  a  car  will  run 
"over"  or  "short,"  not  because  of  any  fault  in  its  equipment, 
but  on  account  of  the  weather.  The  clerks  working  on  this 
mileage  from  day  to  day,  however,  find  that  after  a  little 
experience  they  can  judge  the  approximate  number  of  miles 
the  cars  make  and  thus  keep  the  inspections  very  close  to  the 
number  of  miles  allotted  to  the  various  types  of  equipment. 

Forms  for  these  car  inspection  reports  are  prepared  for 
each  division  each  day  by  the  car  mileage  clerks  in  the  statis- 
tician's office  on  Form  154,  and  are  signed  and  sent  out  daily 
by  the  statistician. 

Where  two  or  more  inspection  car  houses  are  located  on  a 
division,  the  inspection  reports  are  sent  direct  to  each  inspec- 
tion house  on  that  division.  For  certain  divisions  where  cars 
are  inspected  on  Sunday,  two  reports  are  prepared  on  Friday 
of  each  week  and  the  reports  forwarded  to  the  local  division 
in  due  time  so  that  the  Sunday  inspections  can  be  made. 

Wrhen  the  various  cars  have  been  reported  for  inspection, 


356 


"INSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
Record  of  Cars  for  Inspection. 

Division  Barn 

The  Cars  listed  below  have  run  approximately  the  num- 
ber of  miles  allotted  for  their  Type  of  Equipment  and 
should  be  inspected  on 


Car  No 


Car  No. 


f        '           ' v-^-p           >           ^-^— .            .           "^~^ 

1 

1 

1 

1 

Original 
Duplicate 
Triplicate 
Quadruplicate 
Date 

Manager 

Master  Mechanic 

Barn   Supt.    or  Foreman 

Statistician 

Statistician 

Form  154.     Record  of   Cars   for   Inspection    (in  quadruplicate). 
Size,  %y2  X  n. 

a  red  ink  check  is  placed  on  the  card  beside  the  date  on  which 
the  car  has  been  reported.  When  the  full  mileage  has  been 
received  right  up  to  the  day  of  inspection,  the  total  is  inked 
in  red  so  that  the  number  of  miles  reported  for  the  inspection 
shows  up  clearly  on  each  card.  Then  the  mileage  is  started  over 
again  for  the  next  inspection,  and  added  from  day  to  day  until 
the  cars  are  reported  for  further  inspection,  and  so  on.  If  the 
mileage  is  required  for  some  period  other  than  the  inspection 
period,  it  is  a  simple  matter  to  add  the  various  totals  for  the 
inspections  together  as  may  be  required. 

Graphic  Statistics  for  Officers 

Within  comparatively  recent  years  executive  officers  of 
street  railway  companies  have  found  that  graphs  and  charts 


THE    STATISTICIAN'S    WORK 


357 


save  a  great  deal  of  time  when  they  are  made  up  carefully  and 
accurately.  The  accounting  department  is  continually  collect- 
ing and  distributing  data  to  the  various  officers.  After  a  few 
years  these  data  accumulate  in  such  quantities  that  it  is  neces- 
sary to  summarize  and  condense  them  into  small  space,  and 
many  executives  find  the  graphic  method  quite  valuable.  The 
principal  advantage  is  that  when  information  is  presented  in 
chart  form  the  other  party  can  readily  comprehend  its  signifi- 
cance, and  is  more  likely  to  draw  correct  conclusions  than  if 
the  same  information  were  given  in  a  mass  of  figures. 

It  is  true  that  a  great  number  of  persons  still  prefer  a  state- 
ment made  up  of  figures.  It  would  seem,  however,  that  the 
progress  of  the  age  is  along  all  lines  that  will  save  time  and 
money.  Newspapers,  magazines,  and  even  political  campaign 
committees  have  all  realized  the  benefit  of  presenting  facts  by 
chart,  map,  or  graph  of  some  kind;  some  public  schools, 
indeed,  are  now  drilling  pupils  in  the  use  of  the  simpler  forms 
of  charts.  It  appears  more  than  likely  that  the  future  will 
multiply  and  perhaps  standardize  these  methods. 

As  graphs  and  charts  can  be  made  up  in  hundreds  of  dif- 
ferent ways,  each  official  may  decide  which  way  best  suits  his 
particular  need.  The  method  most  used  by  railway  men  at 
the  present  time,  however,  is  that  of  plotting  curves  to  show 
the  trend  of  earnings,  expenses,  etc. 


CHAPTER    XXIV 

AUDITS 

Checking  of  Processes 

Accurate  and  searching  accounting  is  so  important  in  the 
conduct  of  a  street  railway  company  that  it  is  not  sufficient  to 
rest  content  even  with  such  a  careful  system  of  checks  and 
reports  as  that  outlined  in  the  preceding  pages.  Provision  is 
accordingly  made  in  all  well-managed  companies  for  frequent 
examination  of  the  accounting  machinery  itself  to  be  sure  that 
it  is  in  good  running  order;  that  is  to  say,  for  a  system  of 
audits. 

Audits  should  be  made  of  the  various  division  offices,  of 
the  other  departments  of  the  company  and  of  the  comptroller's 
office  as  well. 

Work  of  the  Traveling  Auditors 

A  most  important  part  of  the  comptroller's  staff  is  there- 
fore the  group  of  expert  traveling  auditors  who  are  on  the 
road  most  of  the  time,  visiting  the  division  offices,  the  express 
stations,  and  other  outside  offices. 

These  examinations  of  outside  offices  must  be  systematic 
and  thorough,  frequent,  and  at  unexpected  times,  somewhat 
like  the  visits  of  a  bank  examiner.  The  traveling  auditors  may 
visit  one  office  or  several  offices  on  a  trip,  spending  anywhere 
from  three  days  to  two  weeks  at  a  place.  They  may  visit  one 
division  several  times  a  year,  but  will  make  a  complete  audit 
of  a  division  only  once  or  twice  a  year.  When  away  from  the 
comptroller's  office  for  more  than  three  days  at  a  time,  they 
are  required  to  send  in  reports  of  progress. 

358 


AUDITS 


359 


When  visiting  the  railway  divisions  the  traveling  auditors, 
before  leaving  the  comptroller's  office,  should  draft  a  special 
balance  sheet  and  prepare  such  portions  of  the  schedules  of 
charges  and  credits  as  are  obtainable  from  the  comptroller's 
records,  to  be  completed  at  the  division  office.  As  soon  as  these 
summaries  are  made  out  they  should  be  incorporated  in  this 
special  balance  sheet  of  the  cashier's  accounts. 

The  working  program  of  a  traveling  auditor  in  a  division 
office  may  be  outlined  somewhat  as  follows : 

i.    Working  Funds 

(a)  Verify  cash  and  receipts  for  disbursements  on  hand. 

(b)  Prepare  schedule  of  same. 

2.  Inventory  and  Sales  of  Tickets,  etc.,  to  be  reported 

(a)  Verify  and  prepare  schedule  of  cash  on  hand  for 
receipts  enumerated  for  tickets,  parcel  labels,  chartered  car 
orders,  conductors'  and  motormen's  deposits,  etc. 

(b)  Prepare  exhibit  of  ticket  inventory  and  records  of 
sales  of  tickets  to  be  reported. 

(c)  Verify  inventory  with  actual  tickets,  etc.,  on  hand. 

(d)  Look  out  for  reduced  rate  tickets,  that  is,  the  sub- 
stituting of  these  tickets  for  cash. 

3.  Balance  Sheet 

(a)  Prepare  it. 

(b)  The  amount  due  the  company  should  be  certified  by 
the  division  cashier  as  being  correct. 

4.  Cash  Book 

(a)  Ascertain  that  the  amounts  due  the  last  of  the  month 
according  to  the  monthly  balance  sheets  were  bona  fide  items 
and  were  entered  promptly  during  the  following  month. 

(b)  Verify  receipts  as  given  in  the  cash  book  with  the 
original  records  on  Form  16  (page  39),  ticket  sales,  employees' 
deposit,  and  chartered  car  order  books. 


360 


"INSIDE"   ACCOUNTING   WORK 


It  should  be  ascertained  that  the  receipts  are  entered  on 
the  day  received.  If  there  is  no  daily  ticket  sale  book  in  use, 
the  accountant  should  ascertain  from  the  weekly  ticket  report 
that  the  ticket  sales  as  reported  are  entered  on  the  cash  book 
that  week. 

(c)  Verify  deposits  with  the  bank  book. 

(d)  Ascertain  that  the  daily  balance  does  not  represent 
any  part  of  the  passenger  receipts  and  that  the  receipts  from 
other  sources  are  deposited  promptly  the  following  day. 

5.  Passenger  Receipts 

(a)  Test  with  day  cards,  routes,  cash  fares,  free  passes, 
and  transfers. 

(b)  Scrutinize  closely  any  changes  in  the  total  on  the  day 
cards,  of  free  passes  and  tickets  on  account  of  reduced  rate 
tickets.  If  the  cash  fare  has  been  reduced  on  the  day  card  on 
account  of  such  changes,  then  ascertain  that  this  amount  of 
"over,"  after  verifying  with  the  cash  slip,  appears  on  the 
"over"  list  of  that  day. 

(c)  Verify  day  cards  with  regular  schedules  and  barn 
reports  of  extras,  etc. 

(d)  Test  final  daily  reading  on  register  reports  with  day 
cards. 

(e)  Test  actual  readings. 

6.  Ticket  Reports 

(a)  Verify  with  employees'  deposit  stubs. 

(b)  Verify  with  chartered  car  order  book. 

7.  Unclaimed  Wage  List 

(a)  Verify  with  local  office  records. 

(b)  Ascertain  if  any  should  be  cancelled  and  the  reason. 
It  sometimes  happens  that  unclaimed  wages  represent  time 
credited  on  the  pay-roll  in  error.  When  there  are  such  items, 
the  accountant  should  examine  the  time  slips,  if  any,  and  ascer- 


AUDITS  361 

tain  why,  if  the  employee  had  not  worked,  these  slips  were 
passed  by  the  foreman. 

8.  Employees'  Deposits 

(a)   Ascertain  whether  or  not  every  employee  affected  has 
made  the  required  deposit. 

9.  Statistical  Reports 

(a)  Car  Mileage  and  Hour  Reports: 

Verify  total  per  monthly  report  with  daily  summary 
book. 

Test  footings  of  summary  book. 

Test  daily  figures  per  summary  book  as  follows: 
Class  A — With  regular  schedules,  barn  reports, 

and  day  cards  of  extras 
Class  B — With  chartered  car  orders 
Class  C — With  express  car  reports 
Class  D-E — With  freight  car  reports 
Class  F-G — With  work  car  reports 

(b)  Report  of  Earnings  by  Routes: 

Verify  with  summary  book 

Test  footings  of  summary  book 

Verify  routing  from  day  cards  into  summary  book 

(c)  Miscellaneous 

Special  mileage  reports  and  other  computations 
ustd  in  settlements  with  other  companies  on 
trackage  rights,  etc. 

jo.    Pay-Rolls 

(a)  Verify  with  time  sheets. 

(b)  Verify  conductors'  time  sheets  with  schedule  of  runs, 
and  barn  reports  of  extras  and  miscellaneous  time. 

(c)  Verify  express  motormen's  time  sheets  with  express 
car  reports. 


362 


"INSIDE"   ACCOUNTING  WORK 


(d)  Reconcile  total  time  allotted  conductors  and  motor- 
men  per  pay-roll  daily,  with  the  total  time  as  per  regular 
schedule,  barn  reports  of  extras  and  miscellaneous  time, 
changes  in  running  time,  and  express  report. 

(e)  Verify  bonded  list  and  comment  on  insufficient 
protection. 

(f)  Witness  one  week's  payment. 

(g)  Verify  distribution. 

(h)   Ascertain  that  all  time  slips  are  approved. 

ii.    Storeroom 

(a)  Verify  totals  of  each  account  with  summary  book  or 
sheets  of  issues. 

(b)  Verify  footings  of  summary  book  or  sheets. 

(c)  Verify  requisitions  with  summary  book  or  sheets. 

(d)  Verify  classification  as  to  proper  account. 

(e)  Test  prices  on  requisitions  with  stock  card  and 
extensions. 

(f)  Test  quantities  on  hand. 

12.  Claim  Agents'  Accounts 

(a)  Verify  and  prepare  schedule  of  working  fund. 

(b)  Obtain  certificate  of  bank  balance  and  reconcile  with 
balance  as  per  check  book. 

(c)  Prepare  list  of  checks  drawn  in  settlement  of  claims 
and  verify  with  vouchers  released  at  comptroller's  office  since 
previous  audit. 

(d)  Ascertain  what  checks  are  drawn  in  settlement  of 
claims  only. 

13.  Electric  Light,  Gas,  or  Water  Accounts,  etc. 

(a)  Investigate  the  cashier's  procedure  in  paying  bills  and 
taking  discounts. 


AUDITS 


363 


14.    Special  Ticket  Agents 

Ascertain  that  the  same  individual  or  company  is  conduct- 
ing the  business  with  whom  contract  was  made  in  the  first 
instance  and  that  there  is  no  question  about  their  reliability. 

List  of  Inquiries 

The  following  list  of  questions  must  be  filled  in  completely 
unless  otherwise  directed,  and  should  be  attached  to  the  report 
which  the  traveling  auditor  turns  in  to  the  comptroller. 

Company 

Division  Office 

Date 

1.  Name  of  division  cashier 

2.  Residence 

3.  When  was  he  appointed  division  cashier? 

4.  Was  he  previously  employed  by  this  company,  and  if  so  in  what 

capacity  and  how  long? 

5.  Rave   there   ever  been   shortages  of  any  kind   in   his  accounts? 

(Give  brief  details  of  such  shortages,  if  any,  stating  the  date 
of  audit  and  amount  of  shortage.) 

6.  Did  he  ever  serve  as  division  cashier  in  any  other  office? 

7.  How  many  safes  are  there  and  what  is  their  condition?      (De- 

scribe each  briefly.) 

8.  Is  the  conductors'  safe  of  our  standard  type  and  has  it  a  bell 

attachment  ? 

9.  How  are  the  safes  protected  at  night? 

10.  Where  are  safes  located?     Are  they  so  placed  as  to  be  visible 

from  the  street  ? 

11.  Do  conductors  themselves  deposit  their  money  in  the  safe? 

12.  Is  the  money  turned  in  in  bags  or  in  envelopes? 

13.  Who  besides  the  division  cashier  has  the  combination  of  the  safe? 

14.  When  were  combinations  last  changed  ? 

Were  the  combinations  changed  on  all  safes  when  the  last  em- 
ployee having  the  combination  left  the  service? 

15.  Is  all  money  kept  in  safes  overnight? 


364 


"INSIDE"   ACCOUNTING   WORK 


16.  Is  there  a  copying  press? 

17.  What  clerical  help  does  the  division  cashier  have  ? 
17a.  Are  the  daily  reports  made  promptly? 

17b.  At  what  time  sent  out? 

18.  Does  the  division  cashier  keep  his  cash  book  according  to  require- 

ments? 

19.  Is  the  cash  book  balanced  daily? 

20.  Is  the  over  and  short  list  properly  made  out  and  properly  col- 

lected? 
How  are  collections  of  the  short  lists  made? 

21.  Is  the  stub  record  of  employees'  deposits  kept  properly? 

22.  Has  every  man  a  deposit?     Have  instalments  been  promptly  col- 

lected according  to  instructions? 

23.  Should  any  of  the  wages  appearing  as  outstanding  at  the  audit 

be  cancelled? 

24.  Is  a  record  kept  of  the  numbers  of  all  tickets  received? 

25.  What  checking  is  done  on  transfers  collected  ? 

26.  Is  the  cash  book  for  the  working  fund  properly  kept? 

2j.    Did  you  accompany  the  paymaster  when  paying  off?     If  so,  was 
every  name  accounted  for  ?     What  pay-roll  was  checked  ? 

28.  Does   the   comptroller's   copy  of   the  daily   register   report   come 

direct?    State  exactly  how  the  report  is  handled  from  the  time 
the  barn-man  completes  it. 

29.  Did  the  stubs  of  the  employees'  deposit  receipts  check  properly 

with  Form  28  since  last  audit? 

30.  Did  the  copy  of  chartered  car  orders   in  books  on  hand  check 

properly  with  Form  28? 

31.  Did  all  the  time  slips  that  were  checked  agree  with  the  pay-rolls? 
What  pay-rolls  were  used  ? 

32.  Were  all  time  slips  properly  approved  ? 

33.  Is   the   time   of    conductors    and    motormen   proved   against    the 

schedule  time  each  day  ? 

34.  Are  all  time  slips  carefully  filed  and  also  working  papers  used  in 

working  up  classification  of  charges? 

35.  What  pay-roll  classification  did  you  check  against  the  time  slips? 
What  did  this  check  disclose? 

36.  Are  all  instructions  regarding  pupils'  tickets  being  properly  fol- 

lowed out  ? 

37.  Are  all  records  carefully  and  neatly  filed,  labelled,  and  preserved 

for  the  prescribed  time  ?    Where  are  records  stored  ? 


AUDITS 


365 


38.  How  are  transfers  destroyed  and  how  often  ? 

39.  By  checking  the  list  of  employees  who  should  he  honded  against 

the  office  record  of  bonded  employees,  did  yon  find  any  per- 
sons who  were  not  bonded  or  were  not  bonded  for  a  sufficient 
amount  ?     If  so,  give  details. 

40.  Does  the  division  cashier  keep  a  list  of  bonded  employees  and 

understand  that  we  are  to  be  notified  of  all  changes  in  bonded 
employees  ? 

41.  Are  all  funds  adequately  protected  so  there  is  no  chance  of  theft 

by  outsiders,  excepting,  of  course,  by  violent  methods  ?  In 
other  words,  could  you,  assuming  the  viewpoint  of  an  outsider, 
be  able  to  abstract  funds  under  existing  conditions  without 
being  immediately  detected  ? 

42.  Do  timekeepers,  or  those  whose  duty  it  is  to  approve  time,  under 

any  circumstance  pay  off  or  call  for  the  wages  of  employees 
whose  time  they  are  supposed  to  keep  or  approve  ? 

43.  Is  the  pay-roll  money  drawn  out  on  pay-day? 

44.  Does  the  division  cashier  know  our  policy  in  regard  to  cashing 

checks  ? 

45.  Is  the  working  fund  adequate  or  is  it  excessive? 

46.  Are  all  tickets  kept  in  the  safe  or  vault? 

47.  Is  the  stock  of  tickets  and  express  labels  and  stationery  kept 

down  to  the  minimum  and  in  good  condition  ?  Is  it  apparent 
that  any  of  the  stationery  is  wasted  ? 

48.  Are  express  labels  properly  handled  ?     Is  the  supply  in  the  hands 

of  conductors  periodically  checked  ?  When  was  last  check 
made  ? 

49.  Are  letters  filed  carefully  and  instructions  pasted  in  a  scrap  book? 

50.  Are  all  changes  in  conductors'  day  cards  made  in  colored  pencil 

or  ink? 

51.  Are  all  the  forms  in  use  uniform  with  all  other  places?     Is  the 

day  card  standard? 

52.  Is  there  a  'phone. in  the  division  cashier's  office?     If  so,  what 

business  is  transacted  by  it  ? 

53.  Is  the  division  cashier  following  any  duties  that  are  functions  of 

the  operating  department;  that  is,  issuing  transfers  and  han- 
dling employees'  outfits,  etc.  ? 

54.  Is  additional  help  furnished  the  division  cashier  during  the  sum- 

mer season?  If  so,  state  number  added,  wages  paid,  time  en- 
gaged for,  etc. 


366 


"INSIDE"   ACCOUNTING   WORK 


55.  Are  the  records  kept  systematically  and  neatly  and  is  the  office 

neat  and  orderly? 

56.  What  report  of  stores  issues  did  you  check  against  the  issue  slips? 

57.  What  did   the   check   disclose?     Were   the   issue   slips    properly 

approved  and  made  out  in  full  and  were  the  accounts,  as  far 
as  you  could  ascertain,  properly  charged? 

58.  Was   any   material,    especially    valuable    material,    lying   around 

unprotected?    If  so,  give  full  facts. 

59.  Is  the  accounting  system  followed  in  the  storeroom  uniform  with 

that  of  other  places? 

60.  What  reports  of  passenger  receipts  did  you  examine  ?    What  was 

the  result  of  the  examination  ? 

61.  Are  the  figures  for  the  earnings  by  routes  correctly  compiled? 

62.  Are  the  figures  for  the  other  monthly  reports  of  mileage,  etc., 

correctly  compiled? 

63.  Have  we  a  record  with  this  or  other  audit  papers,  a  memorandum 

setting  forth  the  method  used  in  making  up  each  of  the  monthly 
reports? 

64.  What  monthly  balances   were   checked   to  verify   correctness   of 

outstanding  items  shown  ? 

65.  What  dates  were  checked  as  to  prompt  deposit  of  all  receipts? 

66.  Are  conductors'  returns  checked  from  safes  in  presence  of  member 

of  trolleymen's  organization  ? 

67.  What    withdrawals    from    receipts    for    emergency    requirements 

(i.e.,  for  paying  off  men  after  snow-storm,  etc.,  or  advances  to 
claim  agents)  were  checked  to  determine  that  the  funds  were 
used  for  company  purposes  ? 

68.  Is  system  for  accounting  of  lunch  vouchers  being  followed  and 

did  you  assure  yourself  that  all  payments  therefor  were  legiti- 
mate? 


Auditor's  Report 

No  list  of  inquiries,  however  detailed,  can  represent  com- 
pletely the  examination  which  the  traveling  auditors  are 
expected  to  make.  Particular  points  call  for  special  attention 
from  time  to  time  at  the  different  offices.  At  the  same  time,  of 
course,  the  traveling  auditors  must  be  considerate  and  fair  in 
the  conduct  of  their  inquiry.     When  the  examination  of  any 


AUDITS 


367 


office  is  completed,  the  traveling  auditor  makes  out  his  report 
in  full  detail  to  the  comptroller.  The  report  is  then  carefully 
studied  and  recommendations,  etc.,  which  in  the  mind  of  the 
comptroller  need  attention  are  promptly  acted  upon. 

During  the  course  of  the  audit  the  traveling  auditor  should 
make  out  a  progress  report  to  the  comptroller  at  the  main  office 
somewhat  as  follows : 

Traveling  Auditor's  Report  of  Progress 
Railway  Department 


Office Division Date    .... 

Mr ,  Comptroller 

The  following  work  has  been  completed : 

1 .  Working  Fund 

2.  Inventory  of  Sales  of  Tickets,  etc., 

to  be  reported 

3.  Balance   Sheet  of 

4.  Cash  Books 

5.  Passenger  Receipts.     No.  Days 

6.  Ticket  Reports 

7.  Unclaimed  Wage  List 

8.  Employees'  Deposits 

9.  Statistical  Reports 

10.  Pay-rolls  J  Witnessed 

!  Checked 

11.  Storeroom 

12.  Claim  Agent's  Accounts 

13.  Special  Ticket  Agents 

14.  List  of  Inquiries 

Approximate  date  of  completion  of  Audit 19. 


REMARKS 


Traveling  Auditor 


368 


"INSIDE"   ACCOUNTING   WORK 


Instructions  for  Auditors 

The  following  additional  instructions  regarding  the  con- 
duct and  work  of  the  traveling  auditors  should  be  carefully 
observed: 

While  the  traveling  auditor  is  in  the  home  office  the  regu- 
lar office  hours  should  be  observed.  While  in  outside  offices 
the  regular  hours  should  be  observed  as  nearly  as  practicable. 
If  the  conditions  make  it  necessary  to  work  beyond  the  regu- 
lar office  hours,  the  auditors  are  required  to  comply  with  the 
demands ;  no  extra  compensation  is  allowed  for  such  overtime. 

When  leaving  the  general  office  the  traveling  auditor 
should  register  in  the  usual  way,  either  in  a  book  kept  for  the 
purpose  or  upon  a  blackboard  in  the  comptroller's  office  so 
that  the  comptroller  may  know  at  all  times  where  his  men  are. 
If  the  work  on  the  outside  extends  beyond  three  days  he  should 
send  in  a  report  of  progress,  in  an  envelope  marked  "Per- 
sonal." He  should  also  send  to  the  comptroller  twice  a  week 
a  memorandum  informing  him  of  the  approximate  date  for 
the  completion  of  his  work  and  for  his  return  to  the  home 
office. 

The  traveling  auditor  should  prepare  his  report  upon 
returning  to  the  comptroller's  office,  incorporating  the  data 
which  he  has  gathered  in  the  form  of  notes  before  leaving  the 
division  offices.  These  reports  should  be  prepared  in  good 
shape  and  presented  as  soon  as  possible.  All  working  papers 
should  be  securely  fastened. 

While  no  fixed  amount  is  allowed  for  traveling  expenses 
it  is  expected  that  expenses  other  than  carfare  will  not  exceed 
a  certain  number  of  dollars  per  day.  The  probable  time  the 
audit  will  require  should  be  considered,  as  hotels  sometimes 
make  better  rates  by  the  week  than  by  the  day. 

The  lowest  first-class  through  rate  from  terminal  to  termi- 
nal is  allowed  for  railroad  fares,  and  parlor  car  seats  are 
allowed  for  trips  of  one  hundred  miles  or  over.     Telegrams, 


AUDITS 


369 


telephone  calls,  and  postage  on  firm's  business  are  allowable 
expenditures. 

Traveling  auditors  while  on  engagements  should  bear  in 
mind  that  they  are  representing  the  company  and  should  be 
tactful  in  answering  questions,  etc.  At  all  times  they  should 
treat  the  business  of  the  company  as  confidential.  If  there  is 
more  than  one  accountant  on  the  work,  they  should  consult 
freely,  as  it  is  never  a  reflection  on  the  capacity  of  the  account- 
ant to  consult  with  an  assistant  in  regard  to  his  work.  Care 
should  be  given  to  personal  appearance  to  uphold  the  credit  of 
the  general  office. 

Supervision  of  Inventories 

The  traveling  auditors  have  the  duty  also  of  supervising 
the  yearly  or  semiannual  inventories  of  the  division  store- 
rooms, chiefly  in  order  to  make  sure  that  the  work  is  being 
carried  through  with  good  judgment,  concentrated  effort,  and 
careful  organization. 

The  two  main  objects  sought  in  the  accounting  depart- 
ment's supervision  over  the  inventories  are:  the  detection  and 
elimination  of  all  chances  of  fraud,  whether  to  conceal  dishon- 
esty or  to  support  inefficient  methods;  the  correctness  of  the 
inventories  in  the  matter  of  completeness,  quantities,  values, 
proper  classification  and  distribution,  and  the  application  of 
the  proper  principles  of  accounting. 

As  a  matter  of  precaution  it  might  be  well  for  the  auditor 
to  take  charge  of  all  the  issue  slips  during  the  period  of  count 
and  also  the  invoices  for  material  received.  He  should  see 
that  all  issue  slips  from  the  track  service  are  being  turned  over 
daily. 

Inventory  Procedure 

The  general  procedure  should  be  to  check  up  the  bin  cards 
(see  page  425)  and  then  check  these  with  the  regular  stock 


370  "INSIDE"   ACCOUNTING  WORK 

cards  (see  page  203).  From  the  latter  the  typewritten  inven- 
tory is  to  be  taken.  Some  small  storerooms  do  not  have  bin 
cards,  and  in  these  places  of  course  the  stock  cards  should  be 
made  to  agree  with  the  amount  of  material  on  hand  in  the  bins 
by  writing  on  the  stock  cards  the  year,  month,  and  day,  the 
"'ord  "Inventory,"  and  the  quantity,  unit  price,  and  amount 
in  dollars  and  cents.  Bin  cards  should  always  be  installed  if 
practicable. 

Care  should  be  exercised  to  see  that  the  person  taking  the 
inventory  adds  material  received  after  the  count  begins  and 
before  the  date  of  completion,  and  that  material  issued  mean- 
while is  deducted. 

All  bins  should  be  numbered,  as  well  as  all  bin  cards  and 
all  stock  cards,  each  one  bearing  its  own  number,  and  a  small 
index  should  be  prepared.  This,  however,  is  a  matter  of  the 
local  storeroom  instructions,  which  should  govern  points  of 
detail  procedure. 

Need  for  Caution  and  Accuracy 

If  the  auditors  discover,  while  taking  the  inventory,  that 
the  bin  cards  are  not  being  used  properly,  full  particulars 
should  be  reported  to  the  home  office.  The  bin  cards  should 
start  off  with  the  inventory  of  last  year  and  show  date,  quan- 
tity, and  price. 

Care  should  be  taken  to  exclude  any  items  which  may  be 
included  in  the  fixed  capital  accounts  of  the  company.  This 
would  include,  for  example,  parts  of  cars  which  may  be  scat- 
tered in  the  shops  but  which  belong  to  some  particular  car  or 
cars;  also  material  which  may  have  been  charged  out  to 
authorizations. 

In  checking  up  the  inventory  and  before  it  is  finally  com- 
pleted, special  attention  should  be  paid  to  changes  in  price  on 
the  stock  cards,  especially  a  change  or  increase  over  the  previ- 


AUDITS  37j 

ous  inventory  when  no  purchases  have  been  made  during  the 
past  year.  If  a  general  system  of  storeroom  accounting  is  in 
effect  on  all  divisions,  nothing  should  be  changed  except 
through  written  instructions  from  the  comptroller's  office. 

As, stated  in  the  instructions  to  stores  keepers  (page  227), 
reports  of  inventories  must  be  in  the  comptroller's  office  not 
later  than  the  stipulated  date.  If  additional  help  is  needed  in 
order  to  make  this  possible,  application  should  be  made  by  the 
stores  keeper  direct  to  the  comptroller. 

Treasury  Department  Audits 

In  a  large  company  the  treasury  department  should  be 
entirely  separated  from  the  accounting  department.  One  of 
them  accordingly  acts  as  a  check  upon  the  other.  Inasmuch  as 
the  accounting  department  should  handle  no  cash  whatever,  it 
is  possible  and  useful  that  it  should  go  over  the  accounts  of 
the  treasurer  perhaps  twice  a  year.  The  probable  program  of 
such  an  audit  would  be  somewhat  as  follows: 

1.  Verification    of   deposits    in    the    bank    of    the    cash 

receipts  as  shown  on  the  cash  book  for  at  least  one 
month  prior  to  the  date  of  the  audit. 

2.  Comparison  of  all  checks  as  paid  by  the  bank  during 

the  month  just  prior  to  the  audit,  with  the  entries 
on  the  cash  books;  and  comparison  of  checks 
entered  on  the  cash  book  during  the  month,  which 
have  not  been  paid  by  the  bank,  with  the  record,  as 
per  the  check  book  stubs;  or,  if  it  happens  that  no 
check  book  is  used,  as  is  the  case  with  one  of  the 
largest  street  railways  where  voucher  drafts  are 
used  entirely,  then  verification  with  the  similar 
record  book  which  takes  the  place  of  the  check  book 
stubs. 

3.  Verification  of  cash  book  footings  for  the  month. 


372 


"INSIDE"   ACCOUNTING   WORK 


4.  Reconciliation  of  the  cash  book  balances  with  the  bank 

balance,  as  per  certificates  received  from  the  bank. 

5.  Verification  of  payments  by  the  bank  as  compared 

with  cancellation  on  the  treasurer's  books  of  checks 
that  appear  as  outstanding  on  the  date  of  the  audit 
but  which  did  not  appear  as  outstanding  thirty  days 
prior  to  the  audit. 

6.  Verification  of  deposits  to  the  bank  with  cash  receipts 

as  shown  on  the  cash  book  from  the  date  of  the 
audit  to  at  least  ten  days  following  the  date  as  of 
which  the  audit  is  made. 

7.  Comparison  of  checks  as  paid  by  the  bank  during  the 

month  following  the  date  of  the  audit  with  those 
outstanding,  as  of  the  date  of  the  audit. 
If  the  above  program  is  followed,  it  will  insure  a  very  good 
check  on  the  treasurer's  office.  There  are,  of  course,  certain 
preliminaries  which  should  be  taken  care  of  before  the  audit 
is  commenced,  such  as  applying  to  the  banks  for  their  state- 
ments as  of  a  certain  date  to  be  sent  to  the  comptroller  under 
personal  cover  and,  of  course,  the  counting  of  the  cash  on  hand 
in  the  treasurer's  office,  as  of  the  day  of  the  audit,  together 
with  any  securities  or  valuable  papers  which  would  naturally 
come  under  the  jurisdiction  of  the  treasurer's  office. 

Inside  Office  Audits 

The  formal  auditing  of  the  comptroller's  office  itself  will 
be,  according  to  usual  custom,  in  the  hands  of  an  outside  firm 
of  accountants.  When,  however,  the  comptroller's  office  is 
large  and  the  various  functions  divided  among  small  groups 
of  employees,  it  is  possible  to  have  certain  portions  of  the  work 
of  the  office  audited  by  other  members  of  the  staff,  particularly 
by  traveling  auditors.  This  matter  will  depend  a  great  deal, 
of  course,  upon  local  conditions.  Sometimes  a  supply  of 
tickets,  including  revenue  tickets,  commutation  tickets,   free 


AUDITS 


373 


tickets,  etc.,  is  carried  in  stock  by  some  branch  of  the  account- 
ing organization.  Wherever  that  is  the  case  a  good  system  of 
internal  audit  should  be  in  effect.  The  order  blanks  on  which 
requisitions  for  tickets  are  made  out  should  be  prepared  in 
triplicate,  the  original  going  to  the  ticket  printers,  the  dupli- 
cate through  the  comptroller's  office  to  the  branch  where  a 
record  of  the  tickets  issued  and  collected  is  kept,  and  the  tripli- 
cate should  be  retained  by  the  representative  of  the  comptrol- 
ler's office  who  handles  this  ticket  supply.  A  sample  of  order 
blank  (Form  155),  which  is  printed  in  triplicate,  is  given 
herewith. 


THE  WESSEX  COMPANY 

Original 


Order  No. 


.191. 


Please    print    the    following    described    Tickets,    and    forward 
with    least   possible   delay  to    


Traffic   Agent. 


Tickets  Form    Description    Commencing  No.    Closing  No.    Remarks 


Form  155.  Requisition  for  Tickets  (in  triplicate).  Size,  &l/2  X  11. 


Periodically  the  traveling  auditors  can  check  up  the  clerks 
in  charge  to  see  that  all  tickets  which  have  not  been  invoiced  to 
various  ticket  agencies  for  sale  are  duly  on  hand.  A  sample 
of  the  ticket  invoice  used  in  forwarding  tickets  to  the  selling 
agencies  is  given  on  Form  156,  which  is  made  up  in  triplicate. 


374 


"IXSIDE"   ACCOUNTING   WORK 


THE  WESSEX  COMPANY 
TICKET  ROOM 


Xo. 


.  1 9 . 


To 

ORIGINAL 


Herewith  find  tickets  invoiced  below,  which  carefully  examine, 
count  and  make  sure  none  are  missing;  but  under  no  circum- 
stances make  any  alterations  hereon. 

Per TICKET    CLERK 


Form 


Description 


Consecutive 
Numbers    Inclusive 


Commencing      Closing 


No.  Furnished 


To  the   Comptroller, 

I  have  received,   examined  and  counted  all  tickets  as  described 
above,  and  find  them  to  be  correct  as  invoiced. 


.19. 


Form  156.     (a)   Ticket  Invoice   (original).     Size,  8  X   10^4. 


THE  WESSEX  COMPANY 
TICKET  CLERK 


Xo. 


.19. 


To 

DUrLICATE 

Has    today    been 

supplied  with  tickets  described  below:  enter  same  in  stock 
records;  see  that  receipt  is  promptly  returned  and  compare  same 
with  memorandum.  Receipts  must  be  assorted  in  the  order 
in  which  they  are  consecutively  numbered. 

Per TICKET  CLERK 

Form   156.      (b)    Ticket    Invoice    (duplicate).      (Lower   part   of 
form,  same  as  original.) 


AUDITS 


375 


THE  WESSEX  COMPANY 
COMPTROLLER 


No. 


To , 

TRIPLICATE 


.19. 


.Has   this   day 


been  supplied  with  tickets  described  below. 
Please  charge  his  account  accordingly. 

Per TICKET   CLERK 


Form    156.      (c)    Ticket   Invoice    (triplicate).      (Lower   part   of 
form,   same  as  original.) 

The  requisition  used  by  the  outside  office  or  ticket  agent 
for  a  supply  of  tickets  is  made  upon  Form  157. 


THE  WESSEX  COMPANY 

REQUISITION  FOR  TICKETS 
Office 

TO   COMPTROLLER :                                       191 

No.  of 
Tickets 
Wanted 

Form 

Description  or  Style 

Commencing 
Number 

Closing 
Number 

No.  on 
Hand 

^^-^_^->^^^_^~^_-^_^-s^^-^-^^-^---^-'>w^-^-^-^^^---^ 

p^ S_          ^        -w                     ^^  > > > ^*~  ^r    > ■     .        -     ^            ^r     - w^     -w-             -             -  )  ■       -     ^^     -^ 

Note: — Retain  a  copy  of  your  requisition. 

Examine    your    ticket    stock    on    the    20th    of    each    month    and 
order  15  days  in  advance  of  your  requirements. 

Approve 

Ticket  Clerk. 

Form  157.    Outside  Office  Ticket  Requisition.    Size,  8]/2  X  11. 

A  small  ledger  should  be  kept  in  the  form  of  a  running 
inventory  as  a  record  of  the  tickets  on  hand  in  the  stock-room. 


376 


"INSIDE"   ACCOUNTING   WORK 


For  a  record  of  the  tickets  sent  out,  to  be  kept  by  the  clerk  in 
charge  of  the  passenger  end  of  the  work  in  the  comptroller's 
office,  a  card  system  works  out  most  satisfactorily.  A  sample 
of  such  a  record  in  convenient  form  is  shown  on  Form  158. 


THE  WESSEX  COMPANY 

Ticket  Stock  Record       Record  of  Ticket  Sent  to 


Printed  by 


Kind  of  Ticket 


Class 


Value 


Form  No. 


Date 
Rec'd 


On 
Hand 


Form  158.    Ticket  Stock  Record.     Size  5^4  X  4. 

As  already  stated,  the  internal  office  checks  depend  a  great 
deal  upon  conditions  in  the  office.  If  there  are  other  supplies, 
or  if  there  should  be  any  volume  of  money  or  securities,  the 
proper  internal  check  should,  of  course,  be  arranged  for. 
Where  there  is  a  treasury  department  all  moneys  or  securities 
should  be  under  the  supervision  of  the  treasurer. 


Further  Auditing  Devices 

In  the  preceding  pages  very  complete  detail  has  been  given 
for  audits  in  the  local  offices  and  elsewhere.  It  should  be 
stated,  however  —  a  fact  which  is  undoubtedly  apparent  to 
those  experienced  in  street  railway  accounting — that  not  all 
the  secrets  of  checking  and  auditing  have  been  explained. 
With  any  large  company  there  will  be  others  known  to  the 
head  of  the  department  and  to  the  traveling  auditing  force, 
which  for  obvious  reasons  cannot  well  be  set  down. 


Part  IV — Additional  Forms 


CHAPTER    XXV 

FORMS  AND  THEIR  USE 

The  Significance  of  Forms 

As  already  suggested  in  Chapter  XVI,  there  are  other 
phases  of  the  operating  work  of  a  street  railway  company  in 
which  the  accounting  department  is  interested  but  which  limi- 
tations of  space  forbid  describing.  In  order  to  get  some  idea 
of  the  methods  followed,  the  most  important  forms  used  in 
these  operations  by  the  Wessex  Company  are  given  herewith. 
The  following  suggestions  may  be  of  interest  with  regard  to 
the  value  and  the  significance  of  these  forms  as  well  as  of  those 
presented  throughout  the  book. 

The  object  in  using  forms  is  the  saving  of  time  and  labor. 
It  is  by  means  of  them  that  the  various  activities  of  produc- 
tion, distribution,  and  the  like  are  coordinated  efficiently. 
Forms  rank  as  the  great  facilitating  agency  in  the  general 
scheme  of  business  organization,  and  hence  their  importance. 

Where  many  persons  have  to  report  concerning  similar 
matters,  a  more  satisfactory  statement  is  obtained  from  each 
one  by  the  use  of  a  printed  blank  than  by  means  of  memo- 
randa, which  take  more  time  from  each  writer  and  which 
needlessly  vary  with  each  writer.  But,  besides  saving  time, 
forms  when  well  devised  contribute  definitely  to  the  efficiency 
of  business  procedure.  They  serve  to  select  and  to  concen- 
trate attention  upon  the  essentials,  the  strategic  points  of  the 
various  processes  of  the  business.     It  makes  a  great  difference, 

377 


378 


ADDITIONAL   FORMS 


accordingly,  both  to  the  accounting  and  to  the  operation  of  a 
street  railway  company  whether  the  forms  which  constitute 
so  large  a  part  of  its  machinery  are  closely  designed  and 
worked  out.  Careful  study  of  the  forms  used  by  an  organi- 
zation tells  much  as  to  its  methods  and  its  efficiency. 

Emphasis  Here  Placed  on  Arrangement  of  Material 

To  draw  up  forms  so  as  to  obtain  the  best  results  with  the 
least  effort  calls  for  great  care.  A  successful  form  is  rarely 
extemporized ;  it  is  almost  always  the  result  of  long  and  care- 
ful experiment.  Those  given  herewith  should  be  of  interest 
to  all  students  of  the  industry,  and  to  practical  railroad  men 
as  well,  as  suggesting  perhaps  different  methods  of  treatment 
for  what  are  to  them  familiar  matters. 

In  the  representation  of  these  forms  the  chief  considera- 
tion has  been  that  of  arrangement.  This  is  a  point  of  especial 
interest  to  students  of  the  business,  on  both  the  accounting 
and  operating  sides.  While  the  material  to  be  shown  on 
railway  forms  is  in  some  cases  identical  for  all  roads,  in  many 
other  cases  it  differs  widely  according  to  local  conditions. 
Methods  of  arrangement,  however,  and  the  handling  of  the 
particular  requirements  of  a  concrete  situation,  are  of  general 
interest  and  suggestiveness  to  persons  working  on  other  roads. 
The  sizes  indicated  in  the  captions  are  those  of  the  actual 
forms  represented;  the  width  of  the  form  is  stated  first  and 
then  the  depth. 

Two  Varieties  of  Forms 

The  forms  shown  in  this  book,  as  noted  in  Chapter  I,  fall 
into  three  classes:  (i)  reports  by  subordinate  employees 
regarding  their  own  work;  (2)  summaries  of  the  preceding 
reports,  and  records  of  office  work,  by  local  supervising  offi- 
cials; and  (3)  authoritative  digests  of  these  and  other  mat- 
ters, made  by  superior  officials.     Those  of  the  second  and 


FORMS    AND    THEIR    USE  3-9 

third  classes  are  sharply  different  from  those  of  the  first  class. 
In  the  case  of  the  first  class,  the  aim  is  to  secure  an  accurate 
and  impersonal  record  of  a  few  items  of  fact.  In  the  case  of 
the  third  class — and  to  a  less  extent  of  the  second  class — the 
aim  is  to  give  a  compact,  visual  presentation  of  the  relations 
and  tendencies  of  groups  or  masses  of  items. 

The  forms  of  the  first  class  are  intended  to  be  filled  out 
by  comparatively  inexpert  workmen,  and  to  present  informa- 
tion on  a  few  significant  points  for  rapid  checking  by  experts. 
In  make-up  they  should  be  simple  and  brief,  of  convenient  and 
economical  size ;  they  need  not  be  printed  on  especially  durable 
paper. 

The  forms  of  the  second  and  third  classes  are  intended  to 
be  made  out  by  expert  officials,  and  to  be  studied  by  persons 
who  are  on  the  whole  unfamiliar  with  the  facts  presented. 
Forms  of  this  sort  should  be  made  up  on  good  paper,  etc.,  to 
permit  consultation  and  filing.  Questions  of  the  grouping  of 
subject  matter  are  most  important  in  the  case  of  the  third 
class  of  forms,  which  should  be  as  complete  and  compact 
as  possible.  At  the  same  time  they  must  be  readily  intelligible. 
In  a  good  form,  no  matter  how  large  or  elaborate  the  subject 
presented,  the  main  lines  are  clear  and  simple. 


CHAPTER    XXVI 

ADDITIONAL  FORMS  RELATING  TO  PASSENGER 
AND  EXPRESS  SERVICE 

In  addition  to  the  forms  already  shown,  the  following  are 
of  interest.  Form  159  is  an  application  for  employment,  with 
provision  for  photograph  of  applicant;  and  with  it  is  used 
Form  160,  order  to  photographer.  After  the  applicant  has 
been  employed  and  during  his  instruction  period  Forms  161 
and  162,  "Duties  of  Conductors  and  Motormen,"  are  used. 
A  permanent  card  record  is  kept  of  all  conductors  and  motor- 
men  on  Form  163.  For  inspection  of  the  work  of  the  car 
crews,  Forms  164  and  165  are  used. 

With  a  large  company  the  telephone  is  much  used.  Form 
166  covers  the  telephone  calls  in  connection  with  car  opera- 
tion and  Form  167  is  a  record  of  all  toll  calls.  A  daily  dis- 
patcher's report  is  illustrated  in  Form  168;  this  is  a  most 
important  record  and  should  be  compiled  with  care. 


380 


PASSENGER  AND   EXPRESS   SER\  ICE 


38l 


THE  WESSEX  COMPANY 

191.  ... 

APPLICATION  FOR  POSITION  OF 

(Must   answer   questions   in   ink,    in   own   handwriting.) 

Applicant's   name    in   full 

Address   (City,   Street,   and  Number) 

How  long  have  you   resided  there  ? 

What  is  your  present  trade  or  occupation? 

Where  were  you  born? When? 

Are  you   married,   single  or  a  widower? 

Do  you  use  intoxicating  liquors? Is  your  hearing  good? 

Is  your  eyesight  good? Have  you  ever  worn  glasses? 

How  many  dependent  on   you   for  support? 

By  whom  were   you  last   employed? 

Their     address  ? 

How  long  were  you   in  their  employ? 

Why  did  you  leave   their  employ? 

By  whom  employed  during  the  last  three  years? 

Name  Address  From  To  Occupation 


How  long  have  you  been  out  of  employment? 

Have  you  previously  made  application  for  position  with  this 
Company  ?     

If  so,    when?   

Have  you  ever  been  employed  in  any  capacity  on  a  street  rail- 
way ?    

If  so,  when,  where,  in  what  capacity  and  with  what  Com- 
pany?     


Have  you  ever  been  employed  in  any  capacity  on  a  steam  rail- 
road ?     


If  so,  when,  where,  in  what  capacity  and  with  what  Company?.. 


I    refer   for   recommendation   of    my   character   to    the    following 
persons: 

Name  Address. 


Remarks: 


I  certify  that  all  of  the  above  statements  are  true. 

(Signed) 

.  ±<  fGeneral     appearance Complexion 

„£  £  c    Weight     Height 

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|f  E  >, «     Special  Remarks       

l>-aa.l     Record   Taken   by 


Form   159.      (a)    Application   for   Position    (face).     Size, 
Sy2  X  14. 


382 


ADDITIONAL  FORMS 


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PASSENGER  AND   EXPRESS   SERVICE 


383 


THE  WESSEX  COMPANY 


ORDER  TO  PHOTOGRAPHER 


Division 


.191. 


To. 


Dear  Sir: 

Please  take  two  photographs  of  the  bearer 

one  full  face  and  one  profile,  upon  one 

piece  of  paper  and  furnish  us  with  two  prints  of  each  posi- 
tion, the  charge  of  twenty-five  cents  thereof  to  be  collected 
from  the  sitter  in  advance. 

Yours  truly, 


Form  160.     Order  to  Photographer.     Size,  5J/2   X  W/2. 


384 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 


DIVISION 


NAME 


AGE 
Yrs 


WEIGHT 
Lbs. 


HEIGHT 
Ft.    In. 


Badge  No. 


Date  Appointed 


Inspected  by 


Badge  Car 


No. 


No 


No. 


Days  Trip: 


No. 


Date 


Route 


Ridgewood 


Wild  wood 


Waverley 


Pleasanhaile- 


Above  sHident^has  been  fully  instructed  in  his  duties 
and  is  now  qualified  "to  begin  service. 

Chief  Conductor 

Approved; 


.Supt     Date 


.191- 


Forms  161    (a)   and  162   (a).     Conductor's  or 
Motorman's    Instruction    Card    (face).      Size, 
4  X  8H.     (The  faces  of  these  forms  are  ident- 
ical except  for  the  signature.) 


PASSENGER   AND   EXPRESS   SERVICE 


385 


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ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

Badge  No.                                                         Photograph  No. 

I 
Appointed                          Resigned 

Discharged 

Form   163.     Card   List   of    Conductors   and   Motormen.     Size, 
8X5. 


Inspector  

Day 

Line 

Car  No Badge  No. . 

Time  on Time  off . 


THE  WESSEX  COMPANY 


From. 


.191. 


To    

Total  Passengers 

Registered   

TRANSFERS  Collected 

Not  registered 

Free  or  Missed 

Describe  Shortages  and  give  Full  inspection  below 


Form  164.     Inspector's  Report.     Size,  3J/2   X  6. 


PASSENGER  AND   EXPRESS   SERVICE 


387 


THE  WESSEX  COMPANY 
STARTER'S  REPORT  DATE 


Car  No.  Cond.  No.   Motor.  No.  Time  Due  Time  Arrived       Remarks 


Form  165.     Starter's  Report.     Size,  4^  X  5^. 


THE  WESSEX  COMPANY 

FT°oni21:000pAMM'  Daily  Office  Telephone  Report   for.  .day.  .191 

Time 

M 

Badge 
No. 

Run 
No. 

Car 
No. 

Due 

Called 
Up  From 

Trouble 

Orders 

Taken 
By 

Form  166.    Daily  Telephone  Report  of  Cars.    Size,  9  X  11. 


THE  WESSEX  COMPANY 
Date 


191.. 

Daily  Record  of  Telephone  Toll  Calls  at 

Operator on  duty  from M.  to M 

Operator on  duty  from M.  to M. 

Operator on  duty  from M.  to Ml 

Operator on  duty  from M.  to M. 

Operator on  duty  from M.  to M. 


Call 

Called 

Time 

Personal 
or 
Company 

No. 

Party 

Party 

Place 

Rec'd 

Con. 

Disc. 

Remarks 

Form  167.    Daily  Record  of  Telephone  Toll  Calls.     Size, 
8V2   X    11. 


388 


ADDITIONAL   FORMS 


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PASSENGER   AND   EXPRESS    SERVICE 


389 


As  with  all  transportation  companies,  the  numerous  articles 
left  in  the  cars  by  passengers  are  turned  in  at  the  office.  No 
particular  record  is  necessary,  but  a  tag  (Form  169)  is  at- 
tached to  each  article. 

In  connection  with  the  care  for  safety  of  operation,  several 
forms  are  used.  There  is  a  general  form  for  the  examination 
of  conductors  (Form  170).  Where  this  examination  is  to 
cover  single  track  lines  protected  by  automatic  electric  signals, 
Form  171  is  used  in  addition.  When  it  is  to  cover  single  track 
lines  protected  by  hand-thrown  signals,  Form  172  is  used  in 
addition. 

In  connection  with  the  line  repair  service  there  are  two 
forms  (176  and  177)  which  aid  the  division  manager  to  keep 
a  record  of  the  movements  and  work  of  the  repair  crew. 


THE  WESSEX  COMPANY 


LOST  ARTICLE  TAG 

Badge  No 

Car  No 

Run  No 

Date 

Time 

Conductor 

Description  of  Article 

No. 


All  articles  found  by  employees  on  Company 
property  or  cars,  to  be  immediately  sent  to  the 
Manager's  office. 


Form  169.     Lost  Article  Tag.     Size,  2J/2   X  4^. 


39° 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

EXAMINATION  OF  CONDUCTOR  OR  OTHER  EM- 
PLOYEE IN  CHARGE  OF  REAR  END  OF  CAR 
ON  RULES  AFFECTING  THE  SAFETY 
OF    OPERATION 

Conductor  No Name Division     Date 

Bulletin  Boards 

How  often  are  bulletin  boards  to  be  examined? 

Are  the  orders  or  instructions  appearing  on  these  bulletin 
boards,   if  in  conflict   with   these   rules,   to  be   observed? 


Telephone  Orders 
Who  is  to  call  up  for  telephone  orders?. . . 
How  are  telephone  orders  to  be  received?. 


To  whom  are  you  to  repeat  order? 

When  is  it  not  necessary  for  your  motorman  to  repeat  or- 
der to  the  despatcher? 

When  telephone  other  than  that  furnished  by  the  company 
is  used  for  receiving  orders  and  it  is  not  convenient  for 
your  motorman  to  accompany  you  to  such  telephone,  how 
is  the  order  to  be  recorded? 

Are  you  in  such  instances  to  read  order  back  to  the  despatcher 

before  leaving  the  telephone  ? 

Cars  on  Single  Track  Lines 

Whom  does  the  word  "crew"  include  as  used  in  Rule  No. 
12,  Cars  on  Single  Track  Lines ? 

Do  you  understand  that  you  are  held  equally  responsible 
with  your  motorman  for  running  switches? 

Would  you,  without  orders  from  despatcher  or  starter, 
leave  a  fixed  meeting  point  where  you  are  due  to  pass  a 
car,  if  that  car  had  not  arrived? 

How  are  arrangements  for  passing  or  meeting  on  single 
track  lines  to  be  made ? 

What  is  your  motorman  required  to  do  upon  meeting  the 
car  you  are  scheduled  to  pass  before  running  off  turnout 
or  double  track  onto  single  track? , : 

What  are  you  required  to  do? 


When  your  motorman  desires  to  follow  a  car  onto  single 
track  and  has  notified  you,  whom  must  you  notify? 

How  far  may  you  agree  to  carry  green  flag  or  green  light 
for  a  car  following  ? 


PASSENGER   AND    EXPRESS    SERVICE 

Conductor's  Examination  on  General   Rules — page  2 

If  your  car  is  the  first  car  carrying  green  flag  or  green  light 

what  must  you  do  upon  leaving  each  piece  of  single  track 

and  meeting  a  car  that  is  to  run  onto  the  single  track  you 

just  left? 

If  your  car  is  the  first  of  two  or  more  cars  running  together 
or  your  car  is  not  followed  by  another  car,  and  your  mo- 
torman  passed  a  car  carrying  green  flag  or  green  light, 
would  you  call  his  attention  to  same? 

If  you  have  been  told  by  the  conductor  of  a  car  running  in 
the  opposite  direction  that  there  are  cars  following,  what  must 
you  do  before  running  onto  single  track? 

If  your  car  is  the  first  of  two  or  more  cars  running  together 
or  your  car  is  not  followed  by  another  car,  and  you  have 
passed  a  car  carrying  green  flag  or  green  light  what  must 
you  do  before  running  onto  single  track? 


If  you  are  the  conductor  or  other  employee  in  charge  of 
rear  end  of  other  than  a  regular  passenger  car  and  your 
motorman  has  not  advised  you  that  he  has  arranged  with 
the  motorman  of  the  car  ahead  to  carry  flag  for  him, 
what  must  you  do  before  running  onto  single  track? 

What  course  is  to  be  taken  in  case  of  doubt  and  despatcher 
or  starter  cannot  be  reached  for  instructions? 

Red  Tail  Lamps 
Who  is  required  to  see  that  red  tail  lamp  is  on  car? 

Between  what  hours  is  the  red  tail  lamp  to  be  displayed?... 

Who  is  required  to  see  that  red  tail  lamp  is  lighted  and 
kept  lighted? 

Precautionary  Flags  and  Lights 
If  red  flag  or  red  light  is  placed  on  track  and  party  placing 
same  does  not  take  in  such  flag  or  light  within  five  min- 
utes after  your  arrival,  what  must  you  do? 

When  Accidents  Occur 

In  case  of  accident  involving  personal  injury  or  serious  damage 
to  property,  also  in  case  of  blockades,  to  whom  must  you 
telephone  for  orders?   

What  are  you  required  to  do  in  case  your  car  is  derailed 
so  that  there  is  liability  of  a  collision? 


Railroad  Crossings 
How  are  cars  to  be  flagged  over  steam  railroad  crossings? 


391 


3Q2  ADDITIONAL   FORMS 

Conductor's  Examination  on  General  Rules — page  3 

If  car  is  stalled  on  steam  railroad  crossing  what  must  you 
do?  


Where  are  red  lanterns  and  red  flags  to  be  found  at  steam 
railroad  crossings  ?  

Switches 
Should  a  switch  to  a  side  track  be  left  open? 

Disabled  Motorman 
If  your  motorman  were  disabled,  describe  how  you  would 
stop  the  car 

(1)  If  you  could  reach  the  front  platform? 

(2)  If  you  could  not  reach  the  front  platform?..  .. 


Draw-Bridges 

Is  your  motorman  required  to  stop  before  passing  over 
draw-span  of  a  draw-bridge? 

Are  you  required  to  see  that  draw-span  is  closed  before 
giving  your  motorman  bell  to  proceed? 

Freight  and  Work  Trains 
Are  cars  hauling  heavily  loaded  trailers  allowed  to  precede 
passenger  cars  up  grades  ? 

Miscellaneous 
What  must  you  do  when  you  discover 

(a)  Dangerous  track  or  other  conditions? 

(b)  Broken  trolley  wire? 


Is  trolley  pole  to  be  pulled  down  after  dark  at  terminals  while 
passengers  are  leaving  car  or  before  the  trolley  pole  on  the 

other  end  of  car  is  placed  on  the  wire? 

No 

Examined  by  Employee  sign  his  name  here 

(Examiner  sign  his  name  and  state  his  title) 
Date  of  Examination 

Form    170.      Examination    of    Conductors    on    Safety    Rules- 
General. 


PASSENGER  AND   EXPRESS   SERVICE  393 


THE  WESSEX  COMPANY 

EXAMINATION  OF  CONDUCTOR  OR  OTHER  EM- 
PLOYEE IN  CHARGE  OF  REAR  END  OF  CAR 
ON  RULES  AFFECTING  THE  SAFETY  OF 
OPERATION  ON  SINGLE  TRACK  LINES 
PROTECTED    BY    AUTOMATIC 
ELECTRIC     SIGNALS 

What  is"  a  Neutral  signal  ? 

What  is  a  Permissive  signal? 

What  is  a  Danger  signal? 

If  you  arrive  at  a  signal  and  it  is  at  Neutral  position,  what 
must  your  motorman  do  before  passing  under  overhead 
contactor  ? 


What  must  you  do  before  signaling  your  motorman  to  pro- 
ceed?    

When  your  car  passes'  under  overhead  signal  contactor,  how 
must  the  signals  change  to  permit  you  to  proceed? 

If  your' car  arrives  at  a  signal  which  is  at  "Danger"  what 

If  "you  arrived  a'  signal'  that'  is  at  'the  Permissive  position 
and  the  car  ahead  is  carrying  green  flag  or  green  light  tor 
you,  may  you   proceed? 

If  so  what' must  your  motorman  do  before  proceeding? 


What  must  you  do? 

pon    passing    und 

which    is    at    the    . 

change  to  allow  you  to  proceed? 


Upon  "passing"  under"  overhead'  signal    contactor    of    signal 
which    is    at    the    permissive    position,    how    must    signal 


Are 'you  required  to  observe  the  operation  of  signals  upon 
passing  under  overhead  signal  contactor?       ....... 

Would  you  pass  under  an  overhead  signal  contactor  a 
second  time  without  orders  from  despatcher  or  starter.-' 

Whe'n*are"you'permi'tted  to  puli  down  trolley  pole  in  pass- 
ing under  signal  contactor? 

Do'  you  'understand  'tliat  'you  'are'  held  equally  responsible 
with  your  motorman  for  the  correct  operation  oi  these 
signals  ? 


3q4  ADDITIONAL   FORMS 

Conductor's  Examination — Automatic  Signals — page  2 

When  your  motorman  desires  to  follow  a  car  onto  single 
track  and  has  notified  you,  whom  must  you  notify? 


How  far  may  you  agree  to  carry  green  flag  or  green  light 
for  car  following?  


When  you  have  been  notified  by  the  conductor  or  other 
employee  in  charge  of  the  rear  end  of  another  car  that 
such  car  intends  to  follow  you  onto  single  track,  what 
must  you  do  upon  leaving  each  piece  of  single  track  and 
meeting  a  car  that  is  to  run  onto  the  single  track  you  just 
left?   


If  your  car  is  the  first  of  two  or  more  cars  running  together 
or  your  car  is  not  followed  by  another  car  and  your 
motorman  passed  a  car  carrying  green  flag  or  green  light, 
would  you  call  his  attention  to  same? 

If  you  have  been  told  by  conductor  or  other  employee  in 
charge  of  the  rear  end  of  a  car  running  in  the  opposite 
direction,  that  there  are  cars  following,  what  must  you  do 
before  running  onto  single  track? 


If  your  car  is  the  first  of  two  or  more  cars  running  to- 
gether or  your  car  is  not  followed  by  another  car,  and  you 
pass  a  car  carrying  green  flag  or  green  light  what  must 
you  do  before  running  onto  single  track? 


If  you  are  the  conductor  or  other  employee  in  charge  of  the 
rear  end  of  other  than  a  regular  passenger  car  and  your 
motorman  has  not  advised  you  that  he  has  arranged  with 
the  motorman  of  the  car  ahead  to  carry  flag  for  him,  what 
must  you  do  before  running  onto  single  track? 

What  course  is  to  be  taken  in  case  of  doubt  and  despatcher 
or  starter  cannot  be  reached  for  instructions? 


.No. 


Employee  sign  his  name  here. 
Examined  by 


(Examiner  sign  here  and  state  title) 
Date  of  Examination , 


Form  171.  Examination  of  Conductors  on  Safety  Rules — Auto- 
matic  Signals. 


PASSENGER   AND    EXPRESS    SERVICE 


395 


THE  WESSEX  COMPANY 

EXAMINATION   OF  CONDUCTOR  OR   OTHER  EM- 
PLOYEE IN  CHARGE  OF  REAR  END  OF  CAR 
ON  RULES  AFFECTING  THE  SAFETY  OF 
OPERATION  ON  SINGLE  TRACK 
LINES  PROTECTED  BY 
HAND    THROWN 
SIGNALS 


On  turnouts  of  less  than  five  hundred  feet  in  length,  where 
are  both  signal  boxes  located? 

As  car  arrives  on  turnout  what  section  of  single  track  does 
the  box  facing  the  motorman  protect?  

Where  are  signal  boxes  located  on  turnouts  of  more  than 
500  feet  in  length  ? 

If  signal  light  protecting  block  ahead  is  lighted  what  must 
your  motorman  do — 

1st — If  car  ahead  is  not  carrying  a  green  flag  or 
green  light  for  you  ? 

2nd — If  the  car  ahead  is  carrying  a  green  flag  or 
green  light  for  you? 

If  you  arrive  at  a  signal  box  and  the  signal  is  not  lighted 
or  signal  goes  out  while  waiting  at  the  box,  are  you  to 
accompany  your  motorman  to  the  signal  box  and  observe 
his  operation  of  the  same ? 

If  so,  what  are  you  required  to  do  before  motorman  inserts 
key  in  the  signal  box? 

Is  the  motorman  to  turn  the  key  more  than  once  ? 

If  signal  does  not  operate  properly  the  first  time  the  key 

is  turned  what  must  you  do  ? 

Whom  does  the  word  "crew"  as  used  in  these  rules  include? 


If  you  desire  to  follow  another  car  onto  single  track  pro- 
tected by  signals  must  you  and  your  motorman  ask  the 
crew  of  car  you  desire  to  follow  to  carry  green  flag  or 
green  light  for  you ? 

If  you  are  the  conductor  or  other  employee  in  charge  of  the 
rear  end  of  the  first  of  two  or  more  cars  running  to- 
gether, what  must  you  do  upon  leaving  single  track  and 
meeting  car  which  is  to  run  onto  the  single  track  you 
have  just  left? 


396 


ADDITIONAL   FORMS 

Conductor's  Examination — Hand  Thrown  Signals — page  2 

If  you  are  the  conductor  or  other  employee  in  charge  of  the 
rear  end  of  any  one  of  two  or  more  cars  running  to- 
gether, are  you  required  to  see  that  the  light  protecting 
the  single  track  which  you  desire  to  run  onto  is  lighted? 


If  your  car  is  the  first  of  two  or  more  cars  running  to- 
gether or  your  car  is  not  followed  by  another  car,  what 
must  your  motorman  do  upon  meeting  the  first  car  carry- 
ing green  flag  or  green  light? 


If  you  are  told  by  the  conductor  or  other  employee  in 
charge  of  the  rear  end  of  car  running  in  the  opposite 
direction  that  there  are  cars  following  what  must  you  do 
before  going  onto  single  track? 


If  your  car  is  the  first  of  two  or  more  cars  running  to-, 
gether  or  your  car  is  not  followed  by  another  car,  and 
you  pass  a  car  carrying  green  flag  or  green  light,  what 
must  you  do  before  running  onto  single  track? 


If  a  signal  is  found  set  against  your  car  and  the  expected 
car  does  not  appear  promptly  and  orders  cannot  be  ob- 
tained from  despatcher  or  starter  what  are  you  to  do?.... 


If  signals  are  out  of  order  or  do  not  light  upon  the  first 
operation  of  the  key,  and  no  orders  can  be  obtained  from 
despatcher  or  starter,  what  are  you  to  do? 

Are  crews  permitted  to  exchange  or  hold  signal  lights  at 
turnouts  or  terminals? 

Do  you  understand  that  you  are  held  equally  responsible 
with  your  motorman  for  proper  operation  of  these  sig- 
nals ?   


No. 

Examined  by  Employee  sign  his  name  here 


(Examiner  sign  here  and  state  his  title) 
Date  of  Examination    


Form  172.     Examination  of  Conductors  on  Safety  Rules — Hand 
Thrown  Signals. 


PASSENGER   AND    EXPRESS    SERVICE 


397 


THE  WESSEX  COMPANY 

EMERGENCY  STATION  REPORT 
Date   

CALLS 

Time 

Place             Trouble    Found 

Left  Station 

Back  at  Station 

^-^^^^^---^_^-^^V_^_v_^-^N__i^-^_V_^^__^V---^^-X_^-V_---^^-«' 

On  Duty 


Remarks 


(In   Charge) 


Form  173.     Emergency  Station  Report.     Size,  6l/2  X  gl/2. 


THE  WESSEX  COMPANY 
LINE   DEPARTMENT 


Form  174.    Report  of  Line  Superintendent.     Size,  7l/i  X  13. 


CHAPTER    XXVII 

ADDITIONAL  FORMS  RELATING  TO  MAINTE- 
NANCE AND  EQUIPMENT 


SHOP    AND    CAR    HOUSE    FORMS 

Three  forms  relating  to  fire  inspection  are  given  here — 
Form  175,  fire  inspection  report;  Form  176,  sprinkler  report; 
and  a  tag  (Form  177)  for  test  of  fire  extinguishers. 

The  division  manager,  in  connection  with  the  chief  engi- 
neer of  power  and  equipment,  has  jurisdiction  over  the  work 
of  repairing  cars,  records  of  which  are  kept  sometimes  by  the 
master  mechanics  and  sometimes  by  the  barn  foremen  on  the 
forms  shown  below. 

A  descriptive  record  of  each  car  is  kept  on  Form  178. 
For  the  car  inspections  referred  to  in  Chapter  XXIII,  Forms 
179  and  180  are  used. 

Forms  used  by  conductors  and  motormen  and  by  barn 
inspectors  in  reporting  trouble  are  181  and  182.  When  a  car 
is  run  into  the  barn  for  repairs,  that  fact  and  the  subsequent 
return  of  the  car  to  service  is  shown  on  Form  183.  For  de- 
fective armatures  a  tag  (Form  184)  is  used.  When  the  arma- 
ture is  ready  for  service  another  tag  (Form  185)  of  different 
color,  is  attached.  A  permanent  record  of  armature  repairs 
is  kept  on  Form  186.  A  daily  report  of  cars  removed  from 
service  on  account  of  repairs  is  made  out  for  the  division 
manager  by  the  master  mechanic  on  Form  187.  A  monthly 
summary  of  these  reports  for  each  division  is  kept  on  Form 
188. 

398 


SHOP    AND    CAR   HOUSE 


399 


THE  WESSEX  COMPANY 
INSPECTION  REPORT 

General  Fire  Protection 
Building 191. 

Location Inspected    by 

(Title) 


FIRE  PAILS 
Number In   place Full 

STAND  PIPES 

Water  on  stand  pipes Equipment  for  same  in  good 

condition 

CHEMICAL  EXTINGUISHERS 
Note — These  should  be  recharged  at  least  once  a  year. 

Number  in  place Date  tested  and  charged 

FIRE  DOORS 
Closed  and  fastened  nights,  Sundays  and  holidays  and  all  times 

when  not  in  use 

Will  all  fire  doors  close   easily Will  automatic   doors 

close  when  weight  is  released 

Note  any  fire  doors  in  need  of  repairs 

Automatic  attachments   in   order 

SHUTTERS  AND  WIRED  GLASS  WINDOWS 
Closed  and  fastened  nights,   Sundays  and  holidays  and  all  times 

when  not  in  use 

Will  all  shutters  or  windows  close  easily Note  any 

shutters  or  windows  in  need  of  repairs 

HYDRANT  AND   HYDRANT  HOUSES 
Note — Each  hydrant  should  be  given  a  thorough  test  by  flushing  at 
least    twice    a    year,    spring    and    fall.      One    turn    to    open 
should  be  sufficient  at  other  inspections. 

Hydrants  open  easily Free  from  snow  and  ice  and  easily 

accessible 

Hose,    Play    Pipes,   Spanners,    Hydrants,   Wrenches,    Rubber 
Washers,  Axes,  Lanterns,   Nozzle  Holders 

In  their  proper  place  and  ready  for  use Condition 

Note — Each  hose  house  or  stand  pipe  can  be  numbered  and  re- 
ported upon  separately. 

ELEVATOR  AND  STAiR  DOORS  OR  TRAPS 

In  order  and  kept  closed  when  not  in  use 

Note  any  exceptions Condition  of  latches  or  other 

hardware 

CLEANLINESS 

Oily  waste  well  cared  for Basement  clean Yard 

kept  free  from  combustible  material 

Belt  enclosure  clean Clothes  closets  and  water  closets 

clean 

Shafting  and  bearings  well  cared  for Clean 

under  benches Note  any  suggestions  as  to 

possible  improvements  in  cleanliness 

Remarks  and  suggestions. 

Fire  alarm  Boxes 

Keys  in  proper  place Signs  giving  location  in  proper  place 

Watchman's  clock 

Stations  in  good  order 


Form  175.     Fire  Inspection  Report.     Size,  8^2  X   11. 


400 


ADDITIONAL    FORMS 


.191.. 


THE  WESSEX  COMPANY 
INSPECTION  REPORT 
Sprinkler  Systems 

Building 

Location Inspected  by 

(Title) 
VALVES    (Inside  Gates) 
Note — All    gate    valves    to    be    secured    open    with    leather    straps 
fastened   with   padlocks   riveted   or  sealed  and   keys   to  be 
held  by  responsible  parties.     Each  valve  to  be  inspected  by 
turning'  valve  one  turn  to  insure  its  being  wide  open  and 
in  good  working  order.    Drip  valves  to  be  strapped  closed  in 
a  similar  manner. 
Note — Valves   under   approved    supervisory    system    need   not   be 
secured. 
List  of  Valves  Location  Open 

Yes.  Xo 
1. 
2. 
3. 

4,  &c. 
VALVES   (Outside  Post  Indicator  Gates  and   Valves  in   Pits) 
Note — To   be   secured  and   inspected    in    the   same   way   as   inside 
valves. 
List  of  Valves  Location  Open  Strapped 

Yes.  No.  Yes.  No. 

1. 
2. 
3. 

4,  &c. 
Give  numbers  of  any  of  the  above  valves  found  closed,  part  closed, 
not   strapped,    closed   temporarily    at   any   time    since   last   in- 
spection.     Explanation 


Strapped 
Yes.  No. 


Note — Drip   valves   to   be   tested   weekly. 

DRY  SYSTEMS      (Air  Valves) 
Note — Dry  valves  should  be  tested  for  water  column  and  condition 
of  spring  at  least  every  three  months.     Should  be   tripped 
at  least  once  a  year. 
Note — When  system  is  first  set,  test  for  water  column  every  few 
days. 
List  of  Valves  Location  Air  Pressure 

1. 
2. 
3. 
4,  &c. 

Dry  valve  closet  in  good  order  and  properly  heated 

Give   number   of   any   air   system   into    which    water   has    entered 
during    week Explanation 


Are  hand  hole  plugs  in  place. 
Is  flanged  dummy  in  place... 


ALARM   CONNECTIONS 
Note — All    controlling    valves    or    cocks    for    alarm    devices    to    be 
sealed  or  strapped  open.     Special  instructions  to  be  given 
regarding  testing  alarm  valves. 

VALVE   CONTROLLING    ALARM 


List  of  Valves  Location  Open 
Yes.  No 
1. 
2. 
3. 

4,  &c. 
Give  numbers  of  any  alarm  devices  out  of  service 
Explanation 


Strapped    Tested    In  Order 
Yes.  No.    Yes.  No.  Yes.  No 


Form  176.     (a)   Sprinkler  Report   (face).     Size,  8l/2  X   11. 


SHOP   AND   CAR   HOUSE 


401 


GRAVITY  TANK 

.     Full Contents  Frozen Tell-Tale  in  Order 

Condition  of  tank,  hoops  and  supports 

Remedied When 

PRESSURE  TANK 

Water  Level Air  Pressure 

Note — Gauge  glass  cocks  to  be  kept  closed  except  while  inspect- 
ing. 

STEAM  PUMP 
Xote — Pumps  should  be  given  a  thorough  test  with  rated  number 
of  hose  streams  at  least  twice  a  year,  spring  and  fall. 
They  should  be  started  once  a  week,  and  water  discharged 
through  relief  valve  or  otherwise  to  make  certain  pump  is 
in  order. 

Valves  in  steam  connection  from  boiler  to  pump  wide  open 

Minimum  steam  pressure  for  pump  during  week 

Started 

Tested  through hose  streams.  Condition 

Supply  of  oil  on  hand 

AUTOMATIC   REGULATORS 

Regulator  controlling  valves  wide  open water  pressure 

maintained Pump  started  and  regulator  operated  at 

pounds. 

ELECTRIC  PUMP 
Xote — Pumps  should  be  given  a  thorough  test  with  rated  number 
of  hose  streams  at  least  twice  a  year,  spring  and  fall.  They 
should  be  started  once  a  week  and  water  discharged 
through  relief  valve  or  otherwise  to  make  certain  pump  is 
in  order. 

Any  interruption  of  current  supply Condition  of  contact 

points  on  all  switches 

Started Tested  through hose  streams 

Condition 

Automatic  controller  in  order Water  pressure 

maintained 

Supply  of  oil  on  hand 

ROTARY   PUMP 

Note — Pumps  should  be  given  a  thorough  test  with  rated  number 
of  hose  streams  at  least  twice  a  year,  spring  and  fall.  They 
should  be  started  once  a  week  and  water  discharged 
through  relief  valve  or  otherwise  to  make  certain  pump  is 
in  order. 

Started Tested  through hose  streams 

Condition 

Supply  of  oil  on  hand 

AUTOMATIC   SPRINKLERS 

Steamer  connection in  place ready  for  service. 

Any  corroded,  bent,  whitewashed,  gilded  or  painted,  covered  with 
dirt  or  grease,  distribution  of  water  from  sprinklers  obstructed 


Is  there  a  clear  space  of  at  least  two  feet  below  the  ceiling  or 
roof,  free  from  storage  or  other  obstruction.  Note  any  ex- 
ceptions  

Any  operated  since  last  inspection Any  additions  needing 

'sprinklers 

Any  extra  heads 


Form  176.     (b)  Sprinkler  Report  (reverse). 


402 


ADDITIONAL   FORMS 


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SHOP    AND    CAR    HOUSE 


403 


Line. 


THE  WESSEX  COMPANY 
Car  No. 


CAR   BODY 
Type    of    Car... 

Builder     

When    built 


of    parcel 


Number 
racks 
Number  of  seats. 
Seating  capacity  . 
Make  of  seat 


Tread  of  wheel. . 
Height  of  flange. , 
Length  of  axle  over 

all    

Diam.  of  Axle 


Form  178.     (a)  Card  Record  of  Cars  (face).    Size,  8X5. 


MOTOR 


Make 
Type 
H.   P. 


ELECTRICAL 
EQUIPMENTS 

System    of    control.. 
Type  of  controllers. . 


Number  per  car ]  Type  of  contactor, 

No.  of  teeth  on 

pinion     

No.  of  teeth  on 

gear. 


Type  of  reverse 
switch 


Style   of   heaters.... 

Weight       of       elect. 

equip,    complete...., 

REGISTERS 

Type    of   register. 
Type  of  register 

fixtures 


Arrangement  on  I  Diam.        of        trolley  I  Cost    of    trucks 

trucks     wheel     Cost  of  Miscl.  equip. 

Scrapers I  No.  of  lamps  in  car.  |  Total  cost   

Total  weight  of  motor  complete  with  gear  and  gear  case 

Remarks 


Form  178.     (b)  Card  Record  of  Cars  (reverse).     Size,  8X5. 


404 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 
REPORT  OF  INSPECTION  OF  CAR 

Date   cf   Report    Time 

Date   of    Inspection    Time 

Place    of     Inspection 


f     Open 
Number  of  Car "^     Closed 

Single   or    double   truck    

Hand    or   air    Brake 

Condition    of    air    brake 

Condition    of    hand    brake 


Remarks: 


Form  179.     Report  of  Car  Inspection.     Size,  %l/2  X  14. 


SHOP   AND   CAR   HOUSE 


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406 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 
DEFECT  CARD 

Apparatus  Indicated   by  X   is  defective 

1  Trolley  pole                                                     1    Whistle 

"       wheel 

Foot  gong 

"      harp 

Conductor 

spring 

Bell  cord 

base 

Register 

rope 

"       rod 

"       catcher 

"       cord 

Controller 

Car  door  glass 

Motor  supports        | 

Platform  chain 

Gear 

Running  board 

"  case 

"             "        hook 

Flat  wheel 

Draw  bar 

Hot  journal 

Illuminated  sign 

Journal  box  cover 

Dirty  car 

Dust  collar 

Car  O.  K. 

Multiple  unit 

Remarks: 

Reported A.  M.  P.  M. 

Form  181.     Defect  Card.     Size,  3J/2  X   18. 


SHOP   AND   CAR   HOUSE  40~ 


THE  WESSEX  COMPANY 

Date 191  Time  Reported M. 

FLAT  WHEEL  on  Car  No Run  No 

Slight  .or  Bad  (state  which) 

Conductor  Badge  No 

Motorman  Badge  No 

Took  Car  at Time M 

Starter 
From  «J  Conductor    Badge  No 

Motorman    Badge  No 


Form  182.     Report  of  Flat  Wheel.     Size,  6  X  4^. 


THE  WESSEX  COMPANY 


CAR  REPLACEMENT  REPORT 


Division Date . 


Car  No was  taken  off line 

at M.,  and  replaced  by  Car  No at 

M.   Motorman  No Trouble  was  reported  by 


Trouble  found  and  repairs  made  as  below: 


Repaired  and  reported  to  Car  Barn  Foreman  as  ready  for  service 

at     M. 

Barn  by 

Signed 

Foreman 


Form  183.     Car  Replacement  Report.     Size,  slA   x  ^>lA- 


408 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

Attach    this   Tag   to    Fields    and    Armatures    re- 
turned  to  Winding  Department. 

CAUTION.      Do    not    allow   wire 
ends  of  this  armature  to  touch 

on    corners    or 
floor  or  tools. 

Forwarded  from 

Date   Removed 

191 

Removed  from   Car  No. 

Removed  from   Motor   No. 

Part 

Type 

Number 

Condition 

Received  above  part  in  condition 

stated. 

Foreman 

Remarks 

• 

Form  184.     Defective  Armature  Tag.     Size,  3X6. 


THE  WESSEX 

Attach    this   Tag  to   Fields 
livered    Ready    for    Serv 
Department. 

COMPANY 

and   Armatures   De- 
ice.       From    Winding 

CAUTION.      Do    not    allow 
ends  of  this  armature  to 

wire 
touch 

on    corners    or 
floor  or  tools. 

Armature   No. 

Date   Repairs  Completed 

191 

Winding 

Repai 

red  by    * 

Commutator 

Shaft   Bearings  &  Pinion 

Placed  in  Car  No. 

Date  Installed 

191 

Installed   by 

Remarks 

Pitman 

Approved 

Foreman. 

Form  185.     Armature  Tag.     Size,  3X6, 


SHOP   AND    CAR   HOUSE 


409 


RECORD  OF 

THE  WESSEX  COMPANY 

APMAT1IDF  MO 

CAR 

H0U5E 

RBdb 

pin  in 

SERVO 

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NO 

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CAUSE  Of  REMOVAL 

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REMARKS 

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COMMUTATOR 

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."4 

1 — L^_ 

^^ r— — r—                            -1 

Form   186.     Armature  Repair   Record.     Size,  8X5. 


CarBarn  foreman 


Supt. 


Every  car  that  Is  taken  off  a  run  fcr  a  reported  trouble  or  inspection  must  be 
column  and  opposite  car  number  Dot  inside  of  a  circle  0  indicates  a  removal  due 
Sidered  a  mechanical  or  electrical  failure  or  defect. 

These  reports  shal  I  be  made  cut  daily  in  duplicate  by  the  Car  Bam  Foreman, 
iccr  Superintendent,  who  will  retain  copy,  sending  the  original  to  the  Division 


1 

v 

APPROVED 

! 

noti 

Manager 
•ji  on  this  report  by  a  dot  In  proper 
aerating  condition  and  15  not  con- 
will  send  both  to  ttie  Master  Mectwv 
ager 

Form  187.    Daily  Report  of  Cars  Removed  from  Service.     Size, 

\oV2  X  8y2. 


4io 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

^iiMMADVnFrap^DFMnvFnRjnMSFDvirF  month  of                                           ,oi 

revision                                      rAcwm  isf 

Cause  of  Removal 

Failure 

Not  3 

Cause  of  Removal 

Failure 

Ncta 

?efc-t 

Cause  of  Removal 

Failure  Not  a 
jrOefct  Defect 

BODY  AND  MECH.  EQUIP 

1  Damaged 

23  Heaters  or  H.  Switch 

44  Shoe  Defects 

Z  Body  Defective 

24  Misc.  Switches 

45  Snoehead  Defects 

3  Register 

25  Lights  Out 

46  Brake  Rods 

4  Broken  TidleycrReg.Cord 

26  Power  Wiring 

47  Turnbuckles 

5  Gong 

Z7PB.5iqnals 

48  Slack  Adjuster 

6  Sand  Out 

28  Light.  Heat,  Air.  Wirinq 

49  Miscellaneous 

7  Sand  Clogged 

29  Miscellaneous 

BRAKES 

B  SB. Failure 

MOTORS 

50  Brakes  Fbor-Hand 

9  Catcher  or  Retriever 

30  hot  Bearings 

51       »         ••   -Air 

10  Scrapers 

31  Lead  Wires 

52  Ccnp  Mcch  Trouble 

'  1  Broken  Glass 

32  Flashing 

53Comp  Arm  or  Field 

ELEC.  EQUIP.  BOW 

36  Fin  or  Gear 

57  Engineer's  Valve 

15  Trolley  Wheel  or  fork 

37  Gear  Case 

58  Pipe -Leak  or  Break 

16  Trolley  Fble  or  Stand 

38  Broken  Bolts 

59  Miscellaneous 

17  Circuit  Breaker 

39  Miscellaneous 

J8  Controller 

TRUCKS 

19  Resistance 

40  Hot  Bearmq 

20  M .  U .  Cont  or  Reverse 

41  Frame  Defects 

/  No  Trouble  Found 

21  M.U.  Miscellaneous 

42  Wheel  Defects 

-  Repairs  or  Inspection 

::  Headlight 

43  Axle  Defects 

X  Misc. Trouble 

Note-  X  Includes  Miscellaneous  Removals  not  due  toMech  or  F>c  Failures  or  Defects  3nd  not  otherwise  noted. 

Comparing  Month  of                  B      witfiMonttlof                              19      and  with  Month  of                       19 

No 

"/oof  A 

No. 

%ofA 

No 

%ocA 

Total  CarMileaqe 

Total  Cars  Removed  from  Service                              A 

"            "         "        per  IDOO  Miles 

Total  Defects 

"         ••       per  ipoo  Miles                                  B 

Total  Net  Defects 

Total  No  Trouble  found 

Total  Repair  or  Inspection 

CLASSIFICATION  OF  DEFECTS 

No. 

%ofB 

No. 

%ofB 

No. 

%ofB 

Body  and  Mechanical  Equipment 

Electrical  Equipment-Body 

Motors 

Trucks 

Brakes 

._...,. 

Form  188.     Monthly  Summary  of  Cars  Removed  from  Service. 
Size,  Sy2  X  iol/2. 


POWER   AND   EQUIPMENT  4H 

ENGINEERING    FORMS— POWER    AND 

EQUIPMENT 

Some  of  the  forms  used  in  connection  with  the  power 
stations  have  been  given  already  in  the  chapters  on  "Pay- 
Rolls"  and  on  "Other  Departments."  The  following  are  also 
of  interest.  There  is  a  daily  "log"  report  from  the  station 
engineer  on  Form  189,  and  if  there  are  sub-stations  there 
will  be  a  similar  report  or  daily  log  sheet  on  Form  190.  At 
the  end  of  the  month,  summaries  of  these  reports  are  sent  in  to 
the  main  office  on  Form  191  for  the  power  stations  and  Form 
192  for  the  substations. 

It  is  very  important  to  know  that  material  purchased  is  up 
to  the  standard  and  fit  for  the  use  for  which  it  was  bought.  A 
record  for  tests  of  material  is  kept  on  a  test  card  (Form  193), 
which  is  made  up  in  triplicate.  The  original  remains  in  the 
file  at  all  times ;  the  duplicate  and  triplicate  are  forwarded  first 
to  the  person  who  is  to  conduct  the  test;  the  duplicate  is  then 
returned  to  the  chief  engineer  of  power  and  equipment  as  soon 
as  the  test  is  started,  and  after  the  test  is  finished  a  triplicate  is 
filled  out  with  the  information  called  for  and  also  returned  to 
the  chief  engineer  of  power  and  equipment. 


412 


ADDITIONAL    FORMS 


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POWER   AND    EQUIPMENT 


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416 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

Original 
Special  Test   No Date  Authorized File   No 

Division 

Car  No,                                    Station 

Article 

Mfg. 

Date  Started 

Location 

Car  Miles 

K.  W.  H. 

Test  under  Supervision 

of 

REMARKS: 

(Duplicate) 
Chemical  or  Other  Analysis 
REMARKS: 


NOTE:      Under    this    heading    describe    fully   any    special    con- 
ditions  which  may  affect  results  of  test. 


REMARKS: 


(Triplicate) 


NOTE:     Under  this  heading  describe   fully  any  changes  or  va- 


riations noted  in  test  conditions  of  article  under  test  during  entire 


period  of  test. 


Form  193.     (a)   Test  Card   (face).     Size,  6X4.     (Upper  part 

of   duplicate  and   triplicate   includes   the   seven   lines    shown   in 

original.) 


POWER   AND   EQUIPMENT 


417 


Checked  By 


Approved    By 


C.  E.  of  P.  &  E. 


This  Card  must  not  be  taken  from  File,  but  kept  as  permanent 
record  containing  complete  data  of  test,  cheeked  by  official  rec~ 
oramending  test  and  approved  by  C.  Eng.  of  P.  &  E. 


This  Card  with   its  Triplicate,  to  be  sent  to  person   authorized 


to   make   the    test,    must   be    filled   out   when    test   is   started   and 


returned  at  once  to  office  of  C.   Engr.  of  Power  and  Equipment. 


Test  started  as  noted  above. 


Title. 


Date. 


This   Card  with  its  Duplicate,   to  be  sent   to  person  authorized 


to  make  the  test,   will  be  held  by  this  person  until   test  is  com- 


plete,  then  filled  out  with  data  called  for  and  returned  at  once  to 
office  of  C.  Engr.  of  Power  and  Equip. 


Test  completed  as  noted. 


Title. 


Date. 


Form  193.     (b)  Test  Card  (reverse). 


4Ig  ADDITIONAL   FORMS 

ENGINEERING  FORMS— MAINTENANCE  OF  WAY 

Of  the  numerous  records  kept  by  this  office,  some  have 
been  explained  already  in  Chapter  XV,  "Additions  and  Bet- 
terments." A  few  others  of  interest  are  Form  194,  daily  re- 
port of  rail  and  joint  grinding;  Form  195,  daily  report  of  work 
on  track;  Form  196,  daily  report  of  track  laid;  and  Form  197, 
certificate  of  ties  purchased. 


DAY 
Date NIGHT 


THE  WESSEX  COMPANY 

ROADWAY  DEPT. 
Daily  Report  of  Rail  and  Joint  Grinding 

Division 

Street Bound  Track RAIL 

From To 

Give  exact  location:   House   No:  Trolley  pole  or  other  mark 

Lin.  ft.  of  rail  ground  including  joints 

No.  j  oints  ground 

No.  bricks  used  up No.  of  men 

Machine  No Notes 


.  Foreman 


Form  194.     Daily  Report  of  Rail  and  Joint  Grinding.     Size, 

8V2  X  5y2. 


MAINTENANCE   OF   WAY 


419 


THE  WESSEX  COMPANY 

DIVISION 

Roadway    Department.      Report    of    Work    Done    During    24 
Hours  Ending  7  P.  M 191 

Foreman 

No. 
Men 

Location 

Nature  of  Work 

i 

'       ^                     "     ^                                                                                                                                                                               ^^-N^^-X^~"\ 

1                                                                                                                                               1 

Were  there  any  accidents,  derailments,  delays  to  service 
If  so,  report  same  on  other  side  of  this  sheet. 

f^o-n^rn                                  

Form  195.     Daily  Report  of  Work  on  Track.     Size,  II  X  8J^. 


THE  WESSEX  COMPANY 


Date. 


No.     of     Men.  . . 
No.    of    Teams. 


Street 


TRACK  LAID 


East  Bound.  . 
.West  Bound. 
.North  Bound. 
.South    Bound. 


Special   Work 
Repairs    


Material  Used 


No.  of  Feet 


Foreman 


Form  196.     Report  oi  Track  Laid.     Size,  zYz   X  6T/2. 


420 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

PURCHASING  DEPARTMENT 
Certificate  of  Ties  Accepted  From 


No 

File  N< 


Full 
Name* 


.of 


P.  O. 

Address 


.First      Class  at. 


.Second 


.Third 


Rejected 

Inspected 191. 


Delivered  at 


Division 


.Tie  Inspector      c 


Form  197.    Certificate  of  Ties  Accepted.    Size,  81/-  X  3^. 


CHAPTER    XXVIII 

ADDITIONAL  FORMS  RELATING  TO  STORES  AND 
ACCIDENT  CLAIMS 


STORES    FORMS 

Some  additional  forms  used  in  connection  with  the  stores 
department  may  be  mentioned  here.  After  material  has  been 
ordered  by  the  purchasing  agent,  if  it  should  be  necessary  to 
send  a  letter  to  hurry  the  shipment,  Form  198  is  used.  When 
shipments  are  received  "short,"  Form  199  is  used.  Form  200 
is  used  for  requests  to  the  stores  keeper  to  replenish  his  stock. 
In  transferring  material  from  one  place  to  another,  Form  201 
is  used.  In  connection  with  the  sale  of  old  material  as  de- 
scribed on  page  275,  et  seq.,  Form  202  is  used,  and  for  the  bin 
card  referred  to  on  page  369,  Form  203  is  used. 


421 


422 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 
OFFICE  OF  STORES  KEEPER 


.191.... 


Mr. 


Please  advise  by  return  mail,  using  space  provided  below,  when 
the  following  material  will  be  shipped: 


Order  No. 

Requisition  No. 

Quantity  I  Description  of  Material 

! 

• 

Stores  Keeper. 
REPLY 

Form  198.    Request  to  Rush  Material.     Size,  8l/2  X  11. 


THE  WESSEX  COMPANY 

DAILY  SHORT  LIST 
Division                  Date 

191.. 

Description 

Req. 

Date 

Order 

Date 

Hurried 

Remarks. 

Form  199.     Daily  "Short"   Report.     Size,  8^2   X   11. 


STORES 


423 


4^4 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

Date 

To  the  Genera!  Stores  Keeper 
Please  ship  the  following  supplies  to 

At 

Class  of  Material 

Put   Only   One   Class   of    Mater 

al   on   One  Sheet 

Quantity 

Catalogue  No 

or  Size         '     Description 

SHIPPED 

Date 

How 

Remarks 

General  Stores  Keeper                                    Stores  Keeper 

Form  201.     Request  to  General  Stores  Keeper  to  Ship  Supplies. 
Size,  8y2  X   ii. 


THE  WESSEX  COMPANY 


.191. 


General   Stores  Keeper 
Dear  Sir: 

We  have  shipped  on  account  of  material  sales  order  No 

on from   

(Insert  Date  of  Shipment.)  (Insert  Point  of  Shipment.) 

Consigned    to 

At the  following  cars,  namely; 

(Insert  Destination  of  Shipment.) 


Cars-Initial  and  No. 


Gross        Tare        Net 


Material 


I   enclose  bill  of  lading,   sworn  certificate   of  weight,   and  bill 

for  value  of  material  amounting  to  $ 

Tours  truly 


P.S. — This  shipment  completes  the  above  order. 


Form   202.      Division   Stores   Keeper's    Report   of    Materials 
Shipped.     Size,  8  X   ioj^. 


ACCIDENT    CLAIMS 


4»5 


THE  WESSEX  COMPANY 
NAME  OF  ARTICLE 
Item  No. 

DESCRIPTION 

Received 

On  "Hand 

Received 

Date   Amcjr-: 

Date   Amount 

On  Hand 

Form  203.     Bin  Card     Size    -  {    <  &     (.Ruled  on  both  s 


LEGAL  DEPARTMENT  FORMS— ACCIDENT 
CLAIMS 


For  the  work  of  this  department,  already  noticed  in  Chap- 
ter XVI,  it  is  extremely  important  to  keep  accurate  and  full 
records  of  accidents.  The  following  forms  have  been  devised. 
The  first  report  of  an  accident  is  made  by  the  car  crew  on 
Form  204.  The  division  manager  then  fills  out  Form  2  5 
and  the  general  manager  prepares  a  daily  report  for  the  whole 
system  on  Form  206.  For  the  statements  of  witnesses  obtained 
by  the  claim  agent.  Forms  207  and  208  are  used,  with  Form 
200,  a  card  for  the  witness'  address. 

Resides  the  monthly  summary  of  accidents  already  shown 
in  Chapter  NNI.  there  is  a  monthly  report  of  claims.  Form 
2IO,     Permanent  records  are  kept  on  Forms  211  and  212, 


426 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 

ACCIDENT  REPORT 

(This  report  must  be  filled  out  in  ink) 
INSTRUCTIONS:  In  case  of  accident,  however 
slight,  in  connection  with,  or  near  your  car,  to  persons  or 
property,  you  will  at  once  render  all  necessary  assistance, 
and  at  once  obtain  the  names  and  residences  of  the  per- 
sons injured  and  of  the  WITNESSES  ON  OR  NEAR 
THE  CAR.  (This  duty  is  most  important  and  should  un- 
der no  circumstances  be  neglected.)  As  soon  as  possible 
thereafter  make  a  written  report  on  this  blank,  entering 
in  the  proper  place  the  facts  called  for.  The  conductor 
and  motorman  should  fill  out  and  sign  separate  reports. 
All  witnesses'  names  should  be  added  and  the  report  de- 
livered to  the  General  Office  of  the  Company  as  soon  as 
possible. 

Give  no  account  of  an  accident  to  any  person  except 
to  an  official  of  the  Company^ 

To Superintendent.     Place 

Conductor No....     Motorman No.... 

Run  No Car  No Time......M.     Date 19.. 

Number  of  passengers  on  car  at  time 

Was   injured   person   passenger,    employee,   or   traveler   on 

highway?    

Names  and  residences  of  persons  injured,  and  kind  of  prop- 
erty injured  (including  injury  to  car,  if  any) 


General  nature  of  accident  and  injury. 


Where  or  in  whose  charge  was  injured  person  or  property 

left? 

Place  of  accident.     (State  exactly) 

Direction  car  going Was  gong  sounded? 

Direction  person  or  team  going 

Were  brakes,  gong,  fender   and  headlight  in  good  order? 


If  not  in  good  order,  state  what  was  defective  and  in  what 
particular 

Was  fender  dropped? 

Speed  of  car  before  accident,  whether  fast,  moderate  or 
slow   

Was  injured  person  at  fault? Why? 

Headlight,  Arc  or  Incandescent Lighted  or  Out 


WITNESSES.     (On  or  near  car) 
Name,  Residence,  Street  and  Number 


Signature  . . 
Occupation 
No 


Form  204   (a). 


Accident  Report  by  Car  Crew    (face). 
8  x   14. 


Size. 


ACCIDENT    CLAIMS 


427 


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Form  204  (b).     Accident  Report  by  Car  Crew  (reverse).     Size, 

8  X   14. 


THE  WESSEX  COMPANY 

Division 

ACCIDENT  REPORT 


Date    of    Accident 191 

Place City  or  town.. 

Nature    of   accident *. 


.191.... 
.  .Time 


Names  and  occupations  of  employees  concerned:* 


Names   of    passengers,    employees,    and    others    injured    or    killed 
(Designate  employees  by  stating  their  occupation.) 


Damage    to    property , 

Cause  of  accident  and  circumstances  attending  same. 


Manager  or  Supt. 
*This  is  to  cover  names  of  crew  in  charge  of  car,   of  track- 
men,   linemen,    power    station    men,    or    other    employees    of    the 
Company,   engaged   in   the   operation 


Form  205      Alanager's  Report  of   Accident.     Size,  8   X    10. 


428 


ADDITIONAL   FORMS 


THE  WESSEX  COMPANY 
DAILY  ACCIDENT  REPORT 


.191, 


File  No. 

of 
Accident 


Time 

and 

Place 


Car  Name  of 

No.     Person  Injured 


Age 


Nature 

of 
Accident 


Details 


General  Manager 

This  report  to  be  sent  to  Vice-President's  office  daily. 
If  no  accident  occurs  "BLANK"  report  should  be  for- 
warded. 


Form  206.    Daily  Accident  Report.     Size,  8%  X  11. 


THE  WESSEX  COMPANY 


STATEMENT  OF  ACCIDENT 

ON  THE DIVISION 

Name Date 

Address  

Business  Address 

Referring  to  Accident  of 19. .,  I  herewith 

make  the  following  voluntary  statement: 

Form  207.     Report  of  Accident  by  Witness.     Size,  8y2  X  14 


ACCIDENT   CLAIMS 


429 


THE  WESSEX  COMPANY 

Division 


.191. 


Dear : 

Your  name  has  been  reported  as  one  of  several  witnesses  to 

an  accident  which  happened  about o'clock M., 

on  the day  of 19...., 

at  or  near Streets 

where    a 


Will  you  kindly  fill  out  blank  on  reverse  side  of  this  sheet 
and  return  it  in  the  enclosed  envelope,  in  order  that  the  most 
complete  information  may  be  obtained. 

And  greatly  oblige, 


for  The  Wessex  Company 


Form  208.     (a)   Report  of  Accident  by  Witness    (first  page  of 
folder).     Size,  8l/2   X    n. 


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ADDITIONAL   FORMS 


KINDLY    WRITE    YOUR    NAME    AND    ADDRESS     IN     FULL 
AND    RETURN    TO    CONDUCTOR   OR    MOTORMAN. 

(Name  in  Full) 
(Street    and    Number) 

(Name  of  Town) 
(Over) 

— 


Form  209.     (a)    Request  for  Address  of  Witness  of  Accident 
(face).    Size,  3V2  X  2. 


Names   are   requested   to  assist   In   determining   responsibility 
for  this  accident. 

Information  thus   obtained   aids   us   In   our  efforts  to   prevent 

similar  mishaps  in  the  future. 

General   Manager, 

THE   WESSEX    CO. 


Form  209.      (b)    Request   for  Address   of   Witness   of  Accident 
(reverse). 


THE  WESSEX  COMPANY 
Claim  Report  of for  Month  of 191 ... . 

Pending  at  1st  of  Mo. 

Made  During  Mo. 

Disposed  of 

Num-| 

ber      'Remarks 

Num-  | 
ber      Day   Remarks 

Num- 
ber Day   Method 

1  | 

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32 

32 

32 

33 

33 

33 

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34 

34 

35 

35 

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36 

36 

37  I 

37 

I      I 

37 1 

Form  210.    Monthly  Record  of  Claims.    Size,  %y2  X  13.     (Column 
continued  on  reverse  side  of  form.) 


ACCIDENT   CLAIMS 


431 


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ADDITIONAL    FORMS 


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INDEX 

(Figures  in  parentheses  indicate  form  numbers.) 


Abstracts, 

checking  in  comptroller's  office, 

131 
foreign  company  shipments, 
inward,  128 
outward,   127 
Accident  and  damage  reserve,  286 
Accident  report, 
by  car  crew, 

Forms  (204),  427 
by  witness, 

Forms  (207-209),  429-431 
daily, 

Forms  (206),  429 
manager's, 

Forms  (205),  428 
monthly,  329 

Forms  (140),  329 
Accounting  department, 
general  functions,  1-3 
organization,  1-21 
Accounts, 

accident    and    damage    reserve, 

286 
bankrupt,  handling,  298 
fuel  inventory,  270 
general  stores,  273 
interest  and  deposit,  284 
payable,  302 
power  station,  268 
property   and   equipment   with- 
drawal, 282 
receivable,  291 


replaced  machinery  stock,  280 
reserves,  284 
scrap,  275,  277 
Additions    and   betterments,    229- 
244 
authorizations,  229 
belated  bills,  243 
charges    against    other    com- 
panies, 241 
definite  limitations,  230 
distribution  of  charges,  237 
forms,   preparation   of,   233 

Forms  (106),  232 
index,  241 

leased  properties,  235 
ledger,  238 

Forms  (108),  239 
ledger  transfer  books,  240 
material,  231 
notice  of  approval,  236 

Forms  (107),  236 
pay-roll  charges,  231 
physically  completed,  242 
treatment  of  salvage  material, 

234 
ledgers,  240 
necessary  records,  229 
new  construction,  243 
supervision,  13 
Advance  charges,  express,  124 
Agents,  express, 

balance    sheet      (See    "Balance 

sheet") 
ledger    in    comptroller's    office, 
137 


433 


434 


INDEX 


Agents,  express — Continued 
remittances, 
bank  report  of,  135 

Forms  (59),  135 
checking  in  comptroller's  of- 
fice, 135 
Application  for  employment, 

Forms  (159),  381,  382 
Arc  lamps, 

accounting  for,  146 
Armature, 
defective,  tag, 

Forms  (184),  408 
repair  record, 

Forms  (186),  409 
tag, 

Forms  (185),  408 
Attachments, 
permit  for,  255 

Forms  (112),  256-557 
Auditors,  traveling, 

claim  agents'  accounts  checked 

by,  254 
instructions,  368 
list  of  inquiries,  363 
report,  366 

supervision  of  inventories,  369 
work  of,  358 
Audits, 

checking  of  processes,  358 
inside  office,  372 
instructions  for  auditors,  368 
inventory  procedure,  369 
list  of  inquiries,  363 
supervision  of  inventories,  369 
traveling  auditors, 
report,  366 
work  of,  358 
treasury  department,  371 
Authorizations,  229 
belated  bills,  243 
charges    against    other    compa- 
nies, 241 
completed,  242 


definite  limitations,  230 
distribution  of  charges,  237 
index,  241 

leased  properties,  235 
ledger,  238 

Forms  (108),  239 
ledger  transfer  books,  240 
material,  231 
notice  of  approval,  236 

Forms  (107),  236 
pay-roll  charges,  231 
preparation  of  forms,  233 

Forms  (106),  232 
statement,  330 

Forms  (141),  330 
treatment   of   salvage    material, 

234 
Auto  expense, 

comptroller's     monthly    report, 
280 
Forms  (118),  280 
daily  report,  278 

Forms  (116),  278 
division  manager's  monthly  re- 
port, 279 
Forms  (117),  279 
sub-ledgers,  2JJ 
Auxiliary  operations, 

accounting    for    outside    opera- 
tions, 144 
arc  lamps, 

accounting  for,  146 
cancellation  of  charges  against 

consumers,  152 
cash  book,  summary,  153 
electricity,  sale  of,  145 
gas,  sale  of,  145 

Interstate   Commerce   Commis- 
sion system  of  accounting, 

145 
meters, 
accounting  for,  146 
deposits,  receipts  for,  149 
Forms  (62),  150 


INDEX 


435 


Auxiliary    operations — Continued 

meters — Continued 

deposits,     records     for     main 
and  division  offices,  148 

parks,  resorts  and  other  attrac- 
tions, 155 

returning  overpayments  to  con- 
sumers, 153,  154 

transformers,     accounting     for, 
146 

water,  sale  of,  145 


B 


Bags,  conductors',  report,.  31 

Forms  (9),  31 
Balance  sheet, 

cashier's,  checking  in  comptrol- 
ler's office,  86 
division  cashier's,  27 

Forms  (29),  78 
express  agent's,  124 
Forms  (57),  125 
corrections,   132 
Forms  (58),  133 
general,  315 

Forms  (130),  316 
Bank, 

daily  report  to  treasurer,  29 

Forms  (8),  30 
deposit  of  money  in,  102 
report    of    agent's    remittances, 
135 
Forms  (59),  135 
Bankrupt  accounts,  handling,  298 
Betterments    (See  "Additions  and 

betterments") 
Bills, 

Forms  (119),  292 
approval,  292,  302 
checking    shippers'    statements, 

309 
collectible  ledger,  295 
Forms  (122),  296 


collectible  index,  295 

Forms  (122),  296 
collectible  register,  293 

Forms  (120),  294 
collecting,  117,  139,  296 
corrected,  301 
for  cutting  wires,  296 
frequency  of  vouchering,  306 
inward  shipments,   117 

Forms  (53),  1 18 
making  out,  291 
outward  shipments,  117 

Forms  (52),  118 
park  rental,  297 

Forms  (123),  297 
payable      (See     "Invoices     and 

Vouchers") 
sight  draft  bill  of  lading,  Jn<> 
unpaid,  list  of,  295 

Forms  (121),  295 
unpaid,  report  of,  119 

Forms  (54),  120 
voucher  checks,  303 

Forms  (124),  304 
voucher  register,  306 

Forms  (125),  307 
Bills  of  lading,  94 

Forms  (33,  34,  35,  3°),  95"98 
sight  draft,  299 
Bin  card,  370 

Forms  (203),  425 
Buying      (See     "Purchasing     de- 
partment") 


Car  crew,  report  of  accident, 

Forms  (204),  427 
Car  hours, 

report    of    changes    in    running 
time,  353 
Forms  (153),  354 
Car  house,   additional   forms,   398 
Forms  (175-188),  399-410 


43^ 


INDEX 


Car  inspection  reports,  355 

Forms    (154,    179,    180),    356, 
404,  405 
Car  mileage,  350 
cashier's  report  of,  352 

Forms  (151),  352 
inspection  reports,  355 

Forms  (154),  356 
method  of  recording,  351 

Forms  (150,  151,  152),  351-352 
non-revenue,  report  of,  167 
Forms  (73),  167 
Car  replacement  report, 

Forms  (183),  407 
Cars, 
card  record  of, 

Forms  (178),  403 
chartered,  53 
cashier's  report  of,  56 
collection  of  money,  58 
connecting  divisions,  59 
distribution  of  charge  for,  58 
instructions  to  division  cash- 
ier, 56 
orders  for,  53 

Forms  (21),  53 
originating  division,  58 
payment  for,  55 
extra,  report  of,  164 

Forms  (70),  164 
foreign,  54 
passenger,      transportation      of 

packages  on,  60 
removed  from  service, 
daily  report, 

Forms  (187),  409 
summary,  monthly, 
Forms  (188),  410 
telephone  report  of,  daily, 
Forms  (166),  387 
Cash, 
cashier's  daily  report  of,  29 

Forms  (7),  30 
checking  daily  report  of,  84 


daily  report  from  bank,  29 

Forms  (8),  30 
division  cashier's  routine,  36 
Cash  book, 
claim  agent's,  254 
passenger  business,  71 
summary,  division  cashiers'  ac- 
counts, 89 
summary,  refunds  to  light  and 

power  consumers,  153 
working  fund,  71 
Cash  fares     (See  "Fares") 
Cashier,  comptroller's  office     (See 

"Comptroller's  office") 
Cashiers,  division,  35-46 
application  for  pupil's  ticket,  50 

Forms  (20),  51-52 
balance  sheet,  77 
Forms  (29),  78 
cash,  daily  report  of,  29 

Forms  (7),  30 
cash  slips,  sorting,  36 
chartered  cars,  53 

distribution  of  charge  for,  58 
order,  53 

Forms  (21),  53 
report  of,  56 
conductors'  cash,  35 
conductors'  "shorts,"  47 
day  cards, 

correcting,  46 
sorting,  36 

verification  of  record,  40 
employee's  deposit  receipt,  pro- 
cedure when  lost,  65 
Forms  (25),  68 
express  labels,  60 
Forms  (22),  61 
fare-box  reports  and  reconcilia- 
tion, 44 
fidelity  insurance,  340 
foreign  cars,  54 
ledger  of,  89 


INDEX 


437 


Cashiers,  division — Continued 
packages,  record  of,  64 
package    labels    sold,    checking 

report  of,  63 
passenger    earnings,    daily    re- 
port, 
checking  by  day  cards,  45 
compiling,  38-40 
Forms  (16),  39 
reporting  by  routes,  46 
period  report  of  business,  74 

Forms  (28),  75-76 
register  repair  report,  44 

Forms  (18),  43 
register    reports,    reconciliation 
of,  41 
Forms  (17),  42 
school  children's  tickets,  40 
short  and  over  list,  47 

Forms  (19),  48 
"shorts,"  doubtful,  handling,  48 
special  duties,  47-70 
tickets,  daily  report  of,  37 

Forms  (15),  38 
tickets  and  passes,  counting,  37 
transfers,  checking  of,  46 
working  fund  statement,  73 
Cash  slips,  26 

Forms  (3),  27 
sorting,  36 
Certificate, 
ties  accepted, 

Forms  (i97).  420 
to  pay-rolls,  188 
Forms  (84),  188 
Chartered  cars     (See  "Cars") 
Checks,  voucher,  303 
Forms  (124),  304 
Claims, 
adjustment,  142 
agents, 

accounts,  252 

accounts  checked  by  traveling 
auditors,  254 


cash  book,  254 
fidelity  insurance,  340 
working  fund,  253 
card  record, 

Forms  (212),  433 
investigating,  141 
ledger, 

Forms  (211),  432 
losses,     damages,     overcharges, 

140 
monthly  record, 

Forms,  (210),  431 
register,  140 

Forms  (60),  140 
request  to  claimant  for  papers, 
141 
Forms  (61),  141 
Classification   sheets,   material   is- 
sued, 214 
Forms  (08),  214 
Coal, 
adjustments    of    measurements 

reported,  271 
monthly  report  of  consumption, 

245 
Forms  (109),  246 
statement  of  cost  of,  272 
C.  O.   D.  shipments,   104 
collecting,  107 
labels,  106 

Forms  (44),  106 
register,  107 

Forms  (45),  107 
way-bill  and  delivery  sheet,  105 
Forms  (43).  I05 
Collections,  291,  296 

in  comptroller's  office,  139 
Comptroller's  office,  7 
abstracts,  131 
audit  of,  372 
balance  sheet  corrections,  132 

Forms  (58),  133 
cash,   checking  dailv   report   of, 
84 


438 


INDEX 


Comptroller's  office — Continued 
cashier, 
balance  sheet  of,  86 
daily  report  of,  29 
Forms  (7),  30 
claims, 
adjustment,  142 
investigating,  141 
Forms  (61),  141 
registering,  140 
Forms  (60),  140 
collection    of    express    bills     if 

agent  is  unsuccessful,  139 
detail  books, 

cash  summary  book,  89 
division  cashiers'  ledger,  89 
report  of  tickets,  87 

Forms  (30),  81 
summary   of   passenger   busi- 
ness, 89 
Forms  (32),  88 
distribution  of  work,  92 
duties,  18 

express  agents'  ledger,  137 
express  agents'  remittances,  135 
express  and   freight,   nature   of 

work  done,  130 
express  earnings  compiled, 
by  divisions,   136 
by  stations,  136 
general  journal  entries, 

preparation  of,  137 
ledger,  correction,  134 
passenger  business,  final  record 

of,  90 
passenger  earnings,  daily,  84 
passenger     service,     nature     of 

work  done,  80 
pay-rolls,  185 
register    and    fare-box    reports, 

82 
statements,  preparation  of,  91 
ticket    sales    and    miscellaneous 
business,  86 


tickets  and  passes, 
counting,  81 

daily  report  of  collected,  37 
Forms  (15),  38 
way-bills,   131 
transit  book,  132 
unreported,  132 
Conductors, 
badge  numbers,  check  on  bags, 
32 
Forms  (10),  32 
bags,  tally  sheet  for,  31 

Forms  (9),  31 
card  list  of, 

Forms  (163),  386 
drop-safe,  28 
examination     on     safety     rules 

(See  "Safety  rules") 
instruction  card, 

Forms  (161),  384,  385 
receiver's  receipt  for  bags,  26 

Forms  (5),  28 
reports, 
cash  slips,  26 

Forms  (3),  27 
day  cards,  23 

Forms  (i,  2),  24,  25 
express  labels  sold,  60 

Forms  (22),  62 
ticket  envelope,  26 
Forms  (4),  27 
"shorts," 

collecting,  47 
time  slip,  163 
Forms  (69),  163 
Connecting     division,     chartered 

cars,  59 
Construction,  new,  243 
Consumers,    lighting    and    power 
service,  145 
cancellation  of  charges,  152 
overpayments,  returning,  154 
refunds  to,   153 
Correction  ledger,  134 


INDEX 


439 


Costs,  shop  records,  346 
Counsel,  duties,  7 
Credit, 

extended  to  shippers,  119,  I21 

withdrawing,  121 
Cutting  wires,  bills  for,  296 


Damage  and  accident  reserve,  286 
Day  card,  conductor's,  2$ 
Forms  (1,  2),  24-25 
correcting,  46 

express  labels,  report  of,  60 
passenger  earnings,  daily  report 

checked  by,  45 
sorting,  36 

verification  of  record,  40 
Defect  card, 

Forms  (181),  406 
Departmental  organization,  3 
Departments, 
duties  of  heads,  5 
number,  5 
Deposit  and  interest  accounts,  284 
Deposits, 
employees',   for  working   tools, 

65' 
procedure  lost  receipt,  65 

Forms  (25),  68 
receipt,  65 

Forms  (24),  66 
meter,  148 
Depreciation  reserves,  285,  287 
Detail  books,  259 
Disbursements  and  receipts, 
daily  statement  of,  31 1 

Forms  (128),  312 
report  of  general  stores,  322 
Forms  (136),  323 
Discount,  expediting  bills  to  take 

advantage  of,  207 
Dispatcher,  daily  report, 
Forms  (168),  388 


Distribution, 
charge  for  chartered  cars,  58 
charges  under  an  authorization, 

237 
pay-roll     (See  "Pay-rolls") 
Divisional  organization,  3,  8 
advantages,  16 
disadvantages,  16 
Division    cashier's    routine      (See 

"Cashiers") 
Division  manager, 

chartered  car  order,  53 
Forms  (21),  53 
foreign  cars,  procedure,  54 
instructions  to  division  cash- 
ier, 56 
oversight  of  division  affairs,  8 
reports,  245-252     (Sec  also  "Re- 
ports") 
coal  consumption,  245 

Forms  (109),  246 
lubricants  used,  250 
(Forms  (ill),  251 
of  accident, 

Forms  (205),  428 
power  station  output,  248 
Forms  (no),  249 
shop  and  car  house,  additional 
forms, 
Forms  (178-188),  402-410 
transportation,  additional  forms, 
Forms  (159-1 77).  380-401 
Division  offices,  accounting  in,  23 
Divisions,  express  earnings  com- 
piled by,  136 
Dogs,  transportation  of,  65 
Driver's  sheet,  100 
Forms  (39),  101 
Drop-safes,  28 

checking  contents  of,  31 
list  of  conductors'  badge  num- 
bers, 32 
Forms  (10),  32 


44Q 


INDEX 


Drop-safes — Continued 

tally  sheet  for  conductors'  bags, 

31 
Forms  (9),  31 
Duties  of  officers,  5-7 

E 

Earnings, 

express,  compiled  by, 
divisions,  136,  310 

Forms  (127),  311 
stations,  136 
general  operating,  ledger,  265 
park, 
ledger,  269 
statement  of,  326 
Forms  (138),  326 
passenger,  22 

compiled  by  routes,  324 

Forms  (137),  325 
statement  of,  91 
reports, 

express,  321 

Forms  (135),  321 
monthly  operating,  317 
Forms  (131,  132,  133,  134). 
3I/-3I8 
passenger,  checking,  84 
Electricity,  sale  of,  145 
Emergency  station  report, 

Forms  (173),  397 
Employees, 
application  for  position, 
Forms  (159),  381,  382 
classification  of,  155,  158 
deposits  for  working  tools,  65 
duplicate   receipt,   application 
for,  65 
Forms  (25),  68 
lost  receipt,  procedure,  65 

Forms  (25),  68 
receipt  for,  65 
Forms  (24),  66 
illiterate,  payment  of,  187 


increase  in,  179 

Forms  (80),  180 
index  card  of,  193 
Forms  (88),  183 
lunch  vouchers,  68 
Forms  (26),  69 
report  of,  69 
Forms  (27),  70 
payment  of,  186 
resignations     and     promotions, 

181 
unpaid,  record  of,  189 
Forms  (85),  189 
Engineer, 
construction,  duties,  7 
in  charge  of  power  and  equip- 
ment, duties,  7 
Engineering  department,   255 
maintenance  of  way, 

Forms  (194-197),  418-420 
power  and  equipment, 
Forms  (189-193),  411,  417 
Equipment,  maintenance  of,  state- 
ment, 331 
Forms  (142),  33* 
Errors,  correction  of,  in  general 

ledger,  268 
Examination,        conductors,       on 
safety    rules      (See    "Safety 
rules") 
Expense, 
auto,  sub-ledgers,  277 
express,  report  of,  321 

Forms  (135),  321 
ledger, 

general  operating,  265 
handling  of,  267 
park,  269 
operating,    monthly    report    of, 

317 

Forms  (132),  318 
park,  statement,  326, 

Forms  (138),  326 
scrap,  277 


INDEX 


441 


Express,  3 
abstracts, 
inward,       foreign       company 

shipments,   128 
outward,      foreign      company- 
shipments,  127 
advance  charges,   124 
agents, 

fidelity  insurance,  341 
ledger,  137 

period  balance  sheets,   124 
Forms  (57),  125 
bill  of  lading,  94 
Forms  (33),  95 
bills, 

collecting,  117 
inward  shipments,  117 

Forms  (53),  "8 
outward  shipments,  117 
Forms  (52),  118 
claims, 

investigating,   141 
register,  140 

Forms  (60),  140 
classification  of  shipments,  94 
C.  O.  D.  shipments,  104 
collecting,  107 
labels,  106 

Forms  (44),  106 
register,  107 

Forms  (45),  107 
way-bill    and    delivery    sheet, 
105 
Forms  (43),  105 
credit, 

extending,  119,  121 
withdrawing,  121 
driver's  sheet,  100 
Forms  (39),  101 
incoming  shipments,  99 
notice  of,  99 
Forms  (37),  99 


labels,  104 

Forms  (42),  104 
organization,  93 
outgoing  shipments,  94 
"over,  short  and  damaged"  re- 
ports, 108 
Forms  (46),  109 
record,  no 

Forms  (47),  1 11 
receipt  for  delivered  shipment, 
100 
Forms  (38),  100 
receipt  for  money,  100 

Forms  (40),  102 
refused  shipments,  100 
reports, 

earnings  and  expenses,  321 

Forms  (135),  321 
package  labels,  63 
unpaid  bills,  119 
Forms  (54),  120 
settling     comptroller's     correc- 
tions, 126 
settling  sheets,  115 
inward  way-bills,  115 

Forms  (51),  116 
outward  way-bills,  115 

Forms  (50),  116 
posting  to  ledger,  117 
supervision,  13 
tracers,  114 

Forms  (49),  114 
way-bills,  104 

Forms  (41),  103 
abstracting,  112,  121 

Forms  (55,  56),  122-123 
correcting,  112 

Forms  (48),  113 
outward,      foreign      company 
shipments,   127 
Extra  cars  run,  report  of,  164 
Forms  (70),  164 


442 


INDEX 


F 

Fare-box, 
readings,  32 

Forms  (13),  34 
reports, 
checking  in  comptroller's  of- 
fice, 82 
reconciliation,  44 
Fares, 

cash,  accounting  for,  3 
receivers'  tally  sheet  of  conduc- 
tors' cash,  29 
Forms  (6),  29 
Fidelity  insurance,  339 
Filing, 
method   of  destroying  old  rec- 
ords, 337 

Forms  (144),  337 
reports,  143 
system,  336 
Fire  extinguisher,   inspection    re- 
port, 
Forms  (177),  402 
Fire  inspection  report, 

Forms  (175),  399 
Fire  insurance  records,  283 
Flat  wheel,  report, 

Forms  (182),  407 
Foreign  cars, 
manager's  procedure,  54 
register  reading  report,  35 
Forms  (14),  35 
Foreign  company  shipments, 
inward  abstracts,  128 
outward  abstracts,  127 
outward  way-bills,  127 
Foreign  divisions, 
transportation  of  packages  on, 
63 
Forms, 
classes  of,  9-10 
feature  of  operating  method,  10 


representation,    emphasis,    310, 

378 
size,  378 
Freight     (See  "Express") 
Freight  bills,   stamped  by  stores 

keepers,  221 
Fuel  inventory  sub-ledger,  270 
adjustments    of    coal    measure- 
ments reported,  271 
corrections  and  adjustments  in, 
271 
Functions,      accounting      depart- 
ment, 1-3 
cash  fares,  3 
express  and  freight  service,  3 


Gas,  sale  of     (See  "Consumers") 
General  books,  259 
General        stores  (See        also 

"Stores") 
charges  to,  222 
General  traffic  agent,  duties,  7 
Graphic  statistics  for  officers,  356 


Improvements      (See    "Additions 

and  betterments") 
Income     (See  "Earnings") 
Index, 
authorizations,  241 
bills  collectible,  295 
Forms  (122),  296 
vouchers  payable,  308 
Inspection, 
car,  reports,  354 

Forms    (154,    179.    180),    356, 
404,  405 
Inspector, 
register  readings,  32 

Forms  (11),  33 
report  of, 
Forms  (164),  386 


INDEX 


443 


Instruction  card, 
conductors, 

Forms  (161),  384.  385 
motormen, 

Forms  (162),  384,  385 
Insurance, 
fidelity,  339 
fire,  records,  283 
Interest  and  deposit  accounts,  284 
Interstate     Commerce     Commis- 
sion, 265 
accounting  for  auxiliary  opera- 
tions, 145 
"Uniform  System  of  Accounts 
for  Electric  Railways,"  2 
Inventories,  226 

Forms  (105),  227 
accuracy  in  taking,  370 
procedure  in  taking,  369 
supervision    by    traveling   audi- 
tors, 369 
Invoices,     200,     205       (See     also 
"Bills") 
expediting,    to    take    advantage 

of  discount,  207 
lacking,  207 
monthly  report  of,  208 
Forms  (95\  209 


Journal,  general,  260 
entries,  264 
entry  blanks,  260 

Forms  (113),  260 
preparing  entries  for,  137 


Labels, 
express,  104 

Forms  (42),  104 
on  packages  sent  on  passenger 
cars,  60 
Forms  (22),  61 
Labor-saving  devices,  338 


Lamps,  arc,  accounting  for,  146 
Leased  properties, 
authorizations    for   work   done, 

235 
Ledger, 
additions  and  betterments,  240 
authorization,  238 
Forms  (108),  239 
transfer  books,  240 
auto  expense,  277 
bills  collectible,  295 
Forms  (122),  296 
bills   payable,  308 
claim, 

Forms  (211),  432 
correction,  express,  134 
division  cashier's,  89 
expense,  handling  of,  267 
express  agent's,  137 
fuel  inventory,  270 

adjustments  of  coal  measure- 
ments reported,  271 
corrections   and  adjustments, 
271 
general, 
arrangement  of  accounts  for 

general  balance  sheet,  264 
correction  of  errors,  268 
entries,  264 
general  operating  earnings  and 
expense,  265 
Forms  (114),  266 
general  stores,  273 
park  earnings  and  expense,  269 
posting  settling  sheets,  117 
power  station  expense,  268 
scrap,  275 
Legal  department,  252-255 
claim  agents, 
accounts,  252 
working  fund,  253 
Library,  working,  341 
Line  superintendent's  report, 
Forms  (174),  397 


444 


INDEX 


Log,  daily, 
power  station, 

Forms  (189),  412 
substation  (190),  413 
Lost  article  tag, 

Forms  (169),  389 
Lubricants,    monthly    report    of, 
250 
Forms  (in),  251 
Lunch  voucher,  employees',  68 
Forms  (26),  69 
record  of,  69 
Forms  (27),  70 

M 

Machinery, 

replaced  stock  account,  280 
replaced     under     authorization, 
234 
Maintenance, 
equipment,  statement  of,  331 

Forms  (142),  33* 
of  way, 

Forms  (194-197),  418,  420 
of  way  and  structures, 

comparative  statement,  332 
Forms  (143),  332 
Manifests,  212 

Forms  (97),  213 
Material,  report  of, 
daily,  of  received,  204 

Forms  (93),  204 
monthly,  of  issued,  214 

Forms  (99),  215 
of  uninvoiced,  207 
Forms  (94),  208 
Meters, 
accounting  for,  146 
deposits,  148 
receipts,  149 

Forms  (62),  150 
receipts,  temporary,  151 
Forms  (63),  151 


Motormen, 
card  list  of, 

Forms  (163),  386 
express  and  freight, 
day  card,  167 
Forms  (72),  166 
instruction  card, 

Forms  (162),  384,  385 
time  slips,  163 
Forms  (69),  163 
Motor  truck     (See  "Auto") 

N 
Notice, 
correction,  to  express  agent,  134 
freight,  09 

Forms  (37),  99 


Occupation,  classification  by,  158 
Officers, 
duties,  5-7 

graphic  statistics  for,  356 
Oil,  cost  statement,  333 
Operating  department     (See  "Di- 
vision manager") 
Operating   earnings   and   expense 
ledger,  265 
Forms  (114),  266 
Orders, 
blank,  198 

Forms  (91),  198-199 
following  up,  200 
shop,  217 

Forms  (101),  217 
Organization, 
accounting  department,  1-21 
comptroller,  duties  of,  18 
forms,  classes  of,  9 
"inside"  work,  12,  14 
main  office,  17 

Chart  (II),  17 
"outside"  work,  12 


INDEX 


445 


Organization — Continued 
accounting  department — Con- 
tinued 
staff,  15 

supervision,  large  amount  of, 
11 
departmental,  3 
divisional,  3 
advantages,  16 
disadvantages,  16 
duties  of  comptroller's  staff,  19 
express  and  freight  service,  93 
street  railway  company,  1-21 

Chart   (I),  6 
departmental,  3 
divisional,  3 
duties  of  officers,  5 
Originating     division,     chartered 

cars,  58 
"Outside"  work,  12 
"Over,    short   and   damaged"   re- 
ports, 108 
Forms  (46),  109 
record,  no 
Forms  (47),  in 


Packages, 
cashier's  record  of,  64 
transportation  of, 

on  foreign  divisions,  63 
on  passenger  cars,  60 
Parks, 
auxiliary  operations,  155 
bills  for  rental,  297 
Forms  (123),  297 
earnings      and      expense      sub- 
ledger,  269 
statement  of  earnings   and  ex- 
penses, 326 
Forms  (138),  326 


Passenger  service,  22-91 
accounting   in    division    offices, 

23 
cash  book,  71 
forms,  additional, 

Forms  (159-177),  380-401 
record  of,  final,  90 
reports, 
of      earnings,      checking      in 

comptroller's  office,  84 
of  earnings,  compiling  daily, 
38 

Forms  (16),  39 
summary    of    business,    from 
local  cashiers,  89 
Forms  (32),  88 
source  of  street  railway  income, 

22 
supervision,  13 
Passes,  counting,  37 

in  comptroller's  office,  81 
Paymasters'  account,  195 
Pay-rolls, 

Forms  (75-/8),  170-173 
adjustment    of    disputed    time, 
169 
Forms  (74),  168 
approval  of  time  slips  for  out- 
side work,  174 
approving,  159 
assignment  of  wages,  187 

Forms  (83),  187 
certificate  to,  188 
Forms  (84),  188 
change  of,  182 

Forms  (81),  182 
charges   against  authorizations, 

231 
checking  in  comptroller's  office, 

185 
classification, 

by  occupation,  158 

of  employees,  157 
computing  time,  161 


446 


INDEX 


Pay-Roils — Continued 
conductors'  and  motormen's, 

Forms  (77,  78),  172,  173 
day-card,     express     motorman, 
165 
Forms  (72),  166 
distribution  of,  detailed,  192 
monthly,  195 

Forms  (89),  194 
weekly,  192 

Forms  (87),  192 
extra  time,  164 

Forms  (70),  164 
final  checking  of,  192 
final  record  and  journal  entries, 

195 
illiterate  employees,  187 
increased    force    of    employees, 
179 

Forms  (80),  180 
increase  of  pay,  178 

Forms  (79),  178 
index  card  of  employees,  193 

Forms  (88),  193 
miscellaneous  time  allowed,  165 

Forms  (71),  165 
monthly  distribution  of,  195 

Forms  (89),  194 
notice  of  errors  to  comptroller, 

185 
procedure,  157 

in  paying  off,  186 
proof  sheet,  184 

Forms  (82),  184 
record  of  "authorities,"  193 
record  of  unpaid  employees,  189 

Forms  (85),  189 
resignations     and     promotions, 
181 

Forms  (81),  182 
rules  to  follow  in  making  out, 

183 
sliding  scale  of  wages,  179 
supervision,   13 


time  cards, 
conductors'   and  motormen's, 
163 
Forms  (69),  163 
line  employee's,  161 

Forms  (64),  160 
non-revenue       car       mileage, 
167 
Forms  (73),  167 
shop  employee's,  day,  161 

Forms  (65),  160 
shop  employee's,  night,  161 

Forms  (66),  160 
superior  employee's,  162 

Forms  (68),  162 
track  employee's,  161 
Forms  (67),  161 
unclaimed  wages,  189 
varieties,  169 

Forms  (75,  76,  77,  78),  170-173 
wages   not   claimed   at   regular 

time,  189 
weekly  distribution  of,  192 

Forms  (86),  191 
weekly  wage  table,  175 
writing    off    unclaimed    wages, 

193 
Photographer,  order  to, 

Forms  (160),  383 
Posting,  errors  in,  268 
Power  and  equipment, 

Forms  (189-193),  4IJ-417 
Power  plant,  replaced  under  au- 
thorization, 234 
Power  station, 
daily  log, 

Forms  (189),  412 
expense  ledger  accounts,  268 
monthly  report, 
Forms  (191),  414 
report  of  output,  248 

Forms  (no),  249 
statement  of  expenses,  327 
Forms   (139),  328 


INDEX 


447 


Proof  sheet,  pay-roll,  184 

Forms  (82),  184 
Property     and    equipment    with- 
drawal account,  282 
Public  service  commission  state- 
ments, 334 
Purchasing  department,  196-200 
buying,  198 

duties  of  purchasing  agent,  7 
following  up  orders,  200 
invoices,  200 
order  blank,  198 

Forms  (91),  198-199 
procedure,  196 
requisition,  196 

Forms  (90),  197 
supervision,  13 


Rail  and  joint  grinding,  daily  re- 
port of, 
Forms  (194),  4*8 
Receipts, 
for  money  collected  as  freight 
charges,  100 
Forms  (40),  102 
freight,  100 

Forms  (38),  100 
meter  deposits,  149 
Forms  (62),  150 
temporary,  151 
Forms  (63),  151 
Receipts  and  disbursements, 
report  of  general  stores,  322 

Forms  (136),  323 
statement  of  daily,  3*2 
Forms  (128),  312 
Receiver, 
receipt  for  conductors'  bags,  26 

Forms  (5),  28 
tally  sheet  of  conductors'  cash, 
29 
Forms  (6),  29 


Reconciliation  of  register  reports, 
4i 
Forms  (17),  42 
Records, 
card, 

Forms  (212),  433 
claims,  monthly, 

Forms  (210),  431 
classes  of,  9-10 
old, 
method  of  destroying,  337 
Forms  (144),  337 
Refunds,    to    consumers    of    light 

and  power,   153 
Register, 
bills  collectible,  293 
Forms   (120),  294 
index,  295 

Forms  (122),  296 
C.  O.  D.,  107 

Forms  (45),  107 
express  claim,  140 
Forms  (60),  140 
voucher,  306 

Forms    (125),  307 
index,  308 
Registers,  car, 
clock,   26 
fire-box,  26 
readings,  32 
Forms  (11),  33 
checking  in  comptroller's  of- 
fice, 82 
reconciliation  of,  41 

Forms  (17),  42 
repair,  44 

Forms  (18),  43 
Remittances, 
agent's,  checking,  135 
treasurer's    report   of   cashier's, 
84 
Forms  (31),  85 


448 


INDEX 


Rental,  park,  bills  for,  297 

Forms  (123),  297 
Repair  report,  fares  registered,  44 

Forms  (18),  43 
Replaced    machinery,     stock    ac- 
count, 280 
Reports, 
accident      (See    "Accident,    re- 
port") 
car  inspection,  354 

Forms  (154,  179,  180),  404,405 
car  mileage, 

from  cashier,  352 

Forms  (151),  352 
non-revenue,  167 
Forms  (73),  167 
car  replacement, 

Forms  (183),  407 
cars,    chartered,    from   cashiers, 

56 
cars     removed     from     service, 
daily, 
Forms  (187),  409 
summary,  monthly, 
Forms  (188),  410 
cash,  daily, 

checking  of,  84 
cash, 

from  cashiers,  29 

Forms  (7),  30 

coal  consumption,  245 

Forms  (109),  246 
conductors, 
day  cards, 

Forms  (1,  2),  24-25 
express  labels  used  and  sold, 
60 
Forms  (23),  62 
short  and  over,  47 
Forms  (19),  48 
daily  telephone,  of  cars, 

Forms  (166),  387 

dispatcher's^   daily, 

Forms  (168),  388 


division  stores  keeper's, 
supplies  shipped, 
Forms  (202),  434 
emergency  station, 
Forms  (173),  397 
express  earnings  and  expenses, 
321 
Forms  (135),  321 
extra  cars,  164 

Forms  (70),  164 
fare-box,  reconciliation,  44 
filing,  143 
fire  extinguisher  inspection, 

Forms  (177),  402 
fire  inspection, 

Forms  (175),  399 
flat  wheel, 

Forms  (182),  407 
general  stores, 
receipts    and    disbursements, 
322 
Forms  (136),  323 
reconciliation,  274 
inspector's, 

Forms  (164),  386 
line  superintendent's, 

Forms   (174),  397 
lubricants  used,  250 

Forms  (in),  251 
lunch  vouchers,  69 

Forms  (27),  70 
monthly  income,  313 
Forms  (129),  314 
relation    to    Interstate    Com- 
merce Commission  account, 
315 
monthly  operating  earnings  and 
expense,  317 
Forms    (131,    132,   133,    134). 
317,  318,  319,  320 
motor  cars, 
daily,  278 
Forms   (116),  278 


INDEX 


449 


Reports — Continued 
motor  cars — Continued 
monthly,  279 

Forms  (117),  279 
non-revenue  car  mileage,  167 

Forms  (73),  167 
"over,  short  and  damaged,"  108 

Forms  (46?,  109 
passenger  earnings, 
by  routes,  46 

checking  in  comptroller's  of- 
fice,- 84 
daily,  38,  310 
Forms  (16,  127),  39,  311 
period,  of  business,  74 

Forms  (28),  75-76 
power  station,  monthly, 

Forms  (191),  414 
power  station  output,  248 

Forms  (no),  249 
rail  and  joint  grinding,  daily, 

Forms  (194),  418 
receiver's  report  of  collections, 
29 
Forms  (6),  29 
register  and  fare-box  readings, 
32 

Forms  (12,  13,  14),  33-35 
checking  in  comptroller's  of- 
fice, 82 
register, 
reconciliation  of,  41 

Forms  (17),  42 
repair  report,  44 
Forms  (18),  43 
remittances, 
agent's,  from  bank,  135 

Forms  (59),  135 
cashier's,  from  treasurer,  84 
Forms  (31),  85 
scrap  accumulated,  223,  275 

Forms  (104),  224 
"short,"  daily, 
Forms  (199),  422 


sprinkler, 

Forms  (176),  400,  401 
starter's, 

Forms   (165),  387 
substation,  monthly, 
Forms  (192),  415 
summary   of,   from   local   cash- 
iers, 89 
Forms  (32),  88 
tally  sheet  for  conductors'  bags, 

3i 
Forms  (9),  31 
tickets,  87 
cashier's,  daily,  37 
Forms  (15),  38 
monthly,   compiled   in   comp- 
troller's office,  81 
Forms  (30),  82 
tickets  and  miscellaneous  busi- 
ness, 63 
Forms  (28),  75 
checking  in  comptroller's  of- 
fice, 86 
period,  74 

Forms  (28),  75-76 
track  laid, 

Forms  (196),  419 
unpaid  bills,  119 

Forms  (54),  120 
work  on  track,  daily, 

Forms  (195).  4*9 
yearly,  333 
Requisitions,  202 
purchase,  196 
Forms  (90),  197 
Reserves, 
accident  and  damage,  286 
depreciation,  285,  287 
Routes,  earnings  by,  324 

Forms  (i3/)»  3-5 
Rules,  safety   (See  "Safety  rules") 
Rush  material,  request, 
Forms  (198),  422 


45° 


INDEX 


Safety  rules,  examination  of  con- 
ductors on, 
automatic  signals, 

Forms  (171),  393-394 
general, 

Forms  (170),  390-392 
hand-thrown  signals, 
Forms  (172),  395-396 
Sales,  sundry,  299, 

checking,  300 
School  children's  tickets,  49 
Scrap, 
account,  275 
credit  ticket,  219 

Forms  (103),  220 
expense  account,  277 
report  of,  223,  275 
Settling  sheets,  115 
inward  way-bills,  115 

Forms  (51),  116 
outward  way-bills,  115 

Forms  (50),  116 
posting  to  ledger,  117 
Shipments     (See  also  "Express") 
classification     of     express     and 

freight,  94 
refused,  100 
Shipping  memorandums, 
checking     with      material      re- 
ceived, 205 
Shop  and  car  house, 

Forms  (175-188),  399-410 
Shop  orders,  217 

Forms  (101),  217 
Shop  records  and  costs,  346 
axle  record,  348 

Forms  (147),  348 
car  wheel,  346 

Forms  (146),  347 

monthly  report,  348 

Forms  (149),  349 


report   of   pressing   on   and   off 
wheels,  346 
Forms  (145),  347 
report  of  wheels  and  axles  put 
under  or  removed,  348 
Forms  (148),  349 
utility  of,  348 
"Shorts," 

collecting  conductors',  47 
daily  report, 
Forms  (199),  422 
handling  of  doubtful  cases,  48 
"Sight  draft  bill  of  lading,"  299 
Signals     (See  "Safety  rules") 
Sinking  funds,  287 

leading  accountants  on,  288 
Size  of  forms,  378 
Sprinkler  report, 

Forms  (176),  400,  401 
Staff,  accounting  department,  15 
Starter,  report  of, 

Forms  (165),  387 
Statements, 
authorizations,  330 
Forms  (141),  330 
checking  shippers',  309 
comparison   of  maintenance   of 
way  and  structures,  332 
Forms  (143),  332 
cost  of, 
coal,  272 
oil  used,  333 
earnings  by  routes,  324 

Forms  (137),  3^5 
general  stores,  275 
maintenance  of  equipment,  331 

Forms  (142),  331 
miscellaneous  monthly,  ^33 
monthly,  313 
monthly  income, 
relation    to    Commerce    Com- 
mission account,  315 
monthly  income  report,  313 
Forms  (129),  314 


INDEX 


451 


Statements — Continued 

park  earnings  and  expenses,  326 

Forms  (138),  326 
passenger  earnings, 
daily,  310 

Forms  (127),  311 
daily  cash,  91 
by  periods,  91 
power  station  expenses,  327 

Forms  (139),  328 
Public  Service  Commission,  334 
quarterly,   motor   car   cost  rec- 
ord, 280 
Forms  (118),  280 
receipts      and      disbursements, 
daily,  311 
Forms  (128),  312 
seven     days'     cash     passenger 

earnings,  91 
to    officials    and    stockholders, 

334 

transfers  collected,  92 
weekly,  313 
yearly,  333 
Stationery,  economy  in,  339 
Stations,  compiling  express  earn- 
ings by,  136 
Statistician,  duties,  15 
car  hours,  353 

Forms  (153),  354 
car  mileage,  350 
method  of  recording,  351 
Forms   (150,  151,  152),  35*- 
352 
conservative    methods    of    pre- 
senting, 345 
graphic,  for  officers,  356 
investigations,  346 
shop  and  costs  records,  346 
study  of  costs  and  methods  of 
operation,  344 
Stock     (See  "Stores") 
Stock  card,  205 

Forms  (92),  203 


Stockholders,   statements   to,   334 
Stores, 

Forms  (198-203),  421-425 
balance,    notice    of,    to    stores 
keepers,  276 
Forms  (115),  276 
bin  card,  370 

Forms  (203),  425 
care  of  material, 
in  stock,  219 

outside  the  storeroom,  220 
charging  material,  rule  for,  206 
discount  bills,  expediting,  207 
freight  bills  stamped  by  stores 

keeper,  221 
general, 

charges  to,  222 

receipts    and    disbursements, 
monthly  report,  322 
Forms  (136),  323 
reconciliation  reports,  274 
statement,  275 
sub-ledger,  273 
invoices,  205 
lacking,  207 

passed,  monthly  report,  208 
Forms  (95),  208 
issued,  274 

classification,  214 
Forms  (98),  214 
report,  monthly,  214-216 

Forms  (99,  100),  215,  216 
slips,  209,  211 

Forms  (96),  210 
to  other  divisions,  212 

Forms  (97).  213 
to  outsiders,  218 
Forms  (102),  218 
material   received,   daily   report 
of,  204 
Forms  (93),  204 
reconciliation  report,  208 
Forms  (95),  209 


452 


INDEX 


Stores — Continued 

relation    to   accounting   depart- 
ment, 201 
request  to  replenish  stock, 

Forms  (200),  423 
request  to  ship  supplies, 

Forms  (201),  424 
requisitions,  202 

Forms  (90),  197 
foreman's,  209 
Forms  (96),  210 
routine,  201 

scrap    accumulated,    report    of, 
223 
Forms  (104),  224 
scrap  credit  ticket,  219 

Forms  (103),  220 
shipping,   division   stores  keep- 
er's report, 
Forms  (202),  424 
shipping  memorandums,  check- 
ing with,  205 
shop  orders,  217 

Forms  (101),  217 
stock  cards,  205 

Forms  (92),  203 
storeroom    account,    detail    of, 
216 
Forms  (100),  216 
stores     keeper      (See     "Stores 

keeper"  below) 
supervision,  13 
treatment  of  manifests,  212 

Forms  (97),  213 
uninvoiced  material,  report   of, 
207 
Forms  (94),  208 
Stores  keeper, 
duties,  7 

fidelity  insurance,  340 
Substation, 
daily  log, 
Forms  (190),  413 


monthly  report, 
Forms  (192),  415 
Sundry  sales,  299 

checking,  300 
Supervision,  11 

additions  and  betterments,  13 

express  and  freight  service,  13 

passenger  service,  13 

pay-rolls,  13 

purchasing,  13 

stores,  13 
Supplies     (See  "Stores") 


Tax  records,  283 
Telephone, 

report  of  cars,  daily, 

Forms  (166),  387 
toll  calls,  daily  record, 
Forms  (167),  387 
Test  card, 

Forms  (193),  4*6,  417 
Tickets, 
cashier's  daily  report  of,  37 

Forms  (15),  38 
counting,  37,  81 
invoice,  373 

Forms  (156),  374-375 
loose-leaf  book  summary  of,  87 

Forms  (30),  81 
monthly  report  of,  compiled  in 
comptroller's  office,  82 
Forms  (30),  81 
requisitions  for,  373 
Forms  (155),  373 
requisitions  outside,  375 

Forms  (157),  375 
school  children's,  49 
stock  record,  375 
Forms  (158),  376 
Ticket  books, 

redeeming  cancelled,  309 


INDEX 


453 


Ticket  envelope,  conductors',  26 

Forms  (4),  2j 
Ties  accepted,  certificate, 

Forms  (197),  420 
Time  cards, 
disputed    time,    adjustment    of, 
169 
Forms  (74),  168 
conductors',  163 

Forms  (69),  163 
extra  cars  run,  report  of,  164 

Forms  (70),  164 
line  employees',  161 

Forms  (64),  160 
miscellaneous  time,  165 

Forms  (71),  165 
motormen's,  163 

Forms  (69),  163 
non-revenue  car  mileage,  167 

Forms  (73),  167 
shop  employees',  day,  161 

Forms  (65),  160 
shop  employees',  night,  161 

Forms  (66),  160 
superior  employees',  162 

Forms  (68),  162 
track  employees',  161 
Forms  (67),  161 
Timekeepers,    fidelity    insurance, 

340 
Tracers,  114 

Forms  (49),  114 
Track, 
laid,  report  of, 

Forms  (196),  419 
work  on,  daily  report, 
Forms  (195),  419 
Transfer  books,  ledger,  240 
Transfers,  checking,  46 
Transformers,  accounting  for,  146 
Transit  book,  132 
Transportation      (See    "Express" 
and  "Passenger  service") 


Treasurer, 

daily  report  from  bank,  30 

Forms  (7),  30 
report  from,  of  cashier's  remit- 
tance, 84 
Forms  (31),  85 
Treasury    department,    audit    of, 

37i 
Trial  balance  sheets, 
arrangement     of     accounts     in 
general  ledger,  264 
Trucks     (See  "Auto") 


U 


"Uniform  System  of  Accounts 
for  Electric  Railways,"  2, 
145,  265 


Voucher, 
checks,  303 

Forms    (124),   304 
frequency  of  making  out,  306 
payable,  list  of,  308 
Forms  (126),  308 
redeeming       cancelled       ticket 

books,  309 
register,  306 

Forms  (125),  307 
index,  308 

W 

Wages     (See  also  "Pay-rolls") 
assignment  of,   187 
Forms  (83),  187 
sliding  scale,  179 
unclaimed,  189 
writing  off,  193 
Water,   sale   of     (See   "Consum- 
ers") 


454 


INDEX 


Way-bills,  104 

Forms  (41),  103 
abstracting,  112,  121 

Forms  (55.  56),  122-123 
checking  in  comptroller's  office, 

131 
corrections,  112 

Forms  (48),  113 
outward,      shipments      foreign 

company,  127 
transit  book,  132 
unreported, 

checking  in  comptroller's  of- 
fice, 132 


Wires,  bills  for  cutting,  296 
Witness  of  accident,  report  by, 

Forms  (207),  429 
Working  fund, 
claim  agents',  253 
division  cashier's,  71-73 
cash  book,  71 
emergency  cases,  73 
statements    of    disbursement, 
73 


Yearly    statements    and    reports, 
333 


UN. 


'RNIA 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 

This  book  Is  DUE  on  the  last  date  stamped  below. 


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